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Crandall, Inc. has two divisions, Montana and the Alabama. There are no avoidable, direct fixed costs for either division. The following is the income statement

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Crandall, Inc. has two divisions, Montana and the Alabama. There are no avoidable, direct fixed costs for either division. The following is the income statement for the previous year. Montana Alabama Total Sales $435,000 $500,000 $935,000 Variable costs $220,000 $315,000 $535,000 Contribution margin $215,000 $185,000 $400,000 Common fixed costs $150,000 $200,000 $350,000 Net operating income $65.000 ($15,000) $50,000 What would the company's total net operating income for loss) be if the Alabama division was dropped? $45.000 net operating loss $65.000 net operating income $250,000 net operating income $135.000 net operating loss

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