A company expects its two subsidiaries to have the following net income/loss for the next year.

	Subsidiary A	Subsidiary B	Total
Sales	$ 62,000	$ 35,000	$ 97,000
Avoidable Expenses	31,000	28,000	59,000
Unavoidable Expenses	12,000	14,000	26,000
Net Income (loss)	$ 19,000	$ (7,000)	$ 12,000

If the company decides to eliminate Subsidiary B, what will be the companys projected net income/loss for the next year?

Multiple Choice

• $ 12,000 net income.

• $ 10,000 net loss.

• $ 9,000 net loss.

• $ 5,000 net income.

• $ 19,000 net income.