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The Congress Corporation has two divisions--senate and house. The divisions have the following revenues and expenses: senate house Sales $ 585,000 $ 473,000 Variable costs

The Congress Corporation has two divisions--senate and house. The divisions have the following revenues and expenses:

senate

house

Sales

$ 585,000

$ 473,000

Variable costs

174,000

228,300

Traceable fixed costs

145,500

207,000

Allocated common corporate costs

131,000

176,800

Net operating income (loss)

$ 134,500

$ (139,100)

The management of congress is considering the elimination of the house Division. If the house Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the house Division would result in an overall company net operating income (loss) of:

a.$(42,300) negative 42,300

b.$(4,600)

c.$134,500

d.$(139,100)

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