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

North -- South-----

Sales ....................... . $275,000 $250,000

Variable costs .............. 138,000 100,000

Direct fixed costs ......... 90,000 75,000

Allocated corporate costs ..... 85,000 68,000

Net income (loss) ........... .. (38,000) 7,000

The management of Manor is considering the elimination of the North Division. If the North Division were eliminated, the direct fixed costs associated with this division could be avoided. However, corporate costs would still be the same. Given these data, the elimination of the North Division would result in a new company net income (loss) of:

	a.	$45,000
	b.	$7,000
	c.	($47,000).
	d.	($78,000).