The kelsh company has two divisions--north and south what


Problem

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

                                                              North             South

Sales                                                       $900,000       $800,000
Variable Expenses                                     450,000         300,000
Traceable Fixed Expenses                          260,000         210,000
Allocated common corporate expenses        240,000         190,000
Net Operating Income (loss)                       ($50,000)      $100,000

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 of what?

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Accounting Basics: The kelsh company has two divisions--north and south what
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