The Kelso Company has two divisions: Eastern and Western. The Eastern division has the following revenues and expenses: Sales: $900,000
Variable costs: 450,000
Fixed costs: 260,000
Allocated corporate costs: 240,000
Net income (loss): $(50,000)
The management of Kelso is considering the elimination of the Eastern Division. If the Eastern Division is eliminated, the fixed costs associated with this division will be avoided, the allocated corporate costs will not. Given these data, what effect would the elimination of the Eastern Division have on the company's overall net earnings?