Sammy Inc. had two divisions: East and West. The divisions have the following revenues and expenses: East West Sales $950,000 $800,000 Variable Expenses 430,000 320,000 Traceable Fixed Expenses 380,000 130,000 Allocated Common Corporate Expenses 220,000 230,000 Net Income (Loss) (80,000) 120,000 Management is considering the elimination of the East division. If the East division were eliminated, its traceable fixed expenses could be avoided. The total common corporate expenses would be unaffected. Given this data, the elimination of the East division would result in an overall company net operating income of:

$40,000

$120,000

$80,000

($100,000)