Acme Company has two divisions, East Division and West Division.

Here are data regarding the current year:

Acme plans to discontinue the West Division. If the division is

eliminated, $75\%$ of its traceable fixed costs are avoidable. The

remaining $25\%$ are sunk costs. Acme's common fixed costs are

$$246,600.$ What would Acme's operating income $($loss$)$ be if it

eliminates the West Division?

$$156,000$

$$(139,200)$

$$(90,600)$

$$(37,500)$