X Corporation has two divisions South and North. The divisions have the following revenues and expenses:

South North

Sales $450,000 $470,000

Variable Expenses $150,000 $225,000

Traceable Fixed Expenses $105,000 $130,000

Allocated Common Corporate Expenses $95,000 $120,000

Net Operating Income (Loss) $100,000 ($5,000)

Management at X company is pondering the elimination of the North Division. The Traceable fixed expenses of North Division include $15,000 of depreciation expense. Given these data, the elimination of North Division would result in an overall company net operating income of:

(20,000)

(35,000)

$85,000

$100,000