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The Kelsh Company has two divisions--North and South. The divisions have the following revenues and expenses: North South Sales $1,060,000 $976,000 Variable Expenses $522,000 $348,000

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

North South
Sales $1,060,000 $976,000
Variable Expenses $522,000 $348,000
Traceable Fixed Expenses $356,000 $290,000
Allocated Common Corporate Expenses $256,000

$206,000

Net Operating Income (Loss)

$(74,000)

$132,000

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 overall income of the company increasing (decreasing) by:

Group of answer choices

$132,000

$74,000

($182,000)

$58,000

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