Kentucky Distributors has two divisions Northern and Southern. The divisions have provided the following financial information:

		Northern		Southern
Sales		$150,550		$201,530
Variable costs		92,630		100,350
Common fixed costs		68,530		75,380
Operating income		($10,610)		$25,800

Kentuckys executives are considering the elimination of the Northern division. If the division is eliminated, the common fixed costs will remain unchanged. Given these data, should the Northern division be eliminated? (Enter loss using either a negative sign preceding the number e.g. -4,527 or parentheses e.g. (4,527).)

		Total With Northern		Without Northern
Operating income		$		$

Kentucky should OR should not eliminate the Northern division.

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