The Compass Company has two divisions North and South. The divisions have the following Revenues and Expenses:

	North	South
Sales	$900,000	$710,000
Variable Expenses	450,000	300,000
Traceable Fixed Expenses	260,000	210,000
Allocated Common Corporate Expenses	240,000	100,000
Net Operating Income or (Loss)	(50,000)	100,000

Management at Compass is considering the elimination of the North Division. If the North Division is eliminated, its traceable fixed expenses could be avoided. The total common corporate expenses would be unaffected. Given these data, the elimination of North Division would result in an overall company net operating income of

	1.	$100,000
	2.	$150,000
	3.	$(140,000)
	4.	$50,000