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

Northern Southern

Sales $150,000 $210,000

Variable costs 95,000 110,000

Common fixed costs 65,000 75,000

Operating income ($ 10,000) $ 25,000

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? Why?