Gamma Co. has two divisionsNorth and South. North Division has sales of $450,000, variable expenses of $225,000, and fixed expenses of $250,000. South Division has sales of $400,000, variable expenses of $150,000 and fixed expenses of $200,000. Gammas management is considering eliminating the North Division. If North were eliminated, $130,000 of Norths fixed expenses could be avoided. Given these facts, elimination of North Division would result in an overall company net profit of:

Select one:

a. $(70,000)

b. $75,000

c. $70,000

d. $50,000