Nauman Company has the following information pertaining to its two divisions for last year:

	Division X	Division Y
Sales	200,000	400,000
Variable cost of goods sold	60,000	100,000
Variable selling and adm.	70,000	90,000
Direct fixed cost	65,000	170,000
Allocated fixed cost	25,000	30,000
Operating income	(20,000)	10,000

When a division is closed, the direct fixed cost can be avoided. What is the income for Nauman Company if Division X is closed?

1.) 15,000

2.) $10,000

3.) ($10,000)

4.) (15,000)