The King Company has two divisions—North and South. The divisions have the following revenues and expenses:

	North				South
Sales	$	935,000			$	870,000
Variable expenses		457,000				335,000
Traceable fixed expenses		267,000				217,000
Allocated common corporate expenses		254,000				197,000
Net operating income (loss)	$	(43,000	)		$	121,000

Management at King 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 of:

Multiple Choice

• $164,000.

• $121,000.

• $43,000.

• $(133,000).