The Kelsh Company has two divisions--North and South. The divisions have the following revenues and expenses:

	North	South
Sales	$920,000	$822,000
Variable expenses	459,000	306,000
Traceable fixed expenses	272,000	220,000
Allocated common corporate expenses	242,000	192,000
Net operating income (loss)	$(53,000)	$104,000

Management at Kelsh is pondering the elimination of North Division. If North Division were 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 (loss) of:

$157,000

$51,000

$(138,000)

$104,000