The Milham Company has two divisions - East and West. The divisions have the following revenues and expenses:
Management at Milham is pondering the elimination of the West Division since it has shown an operating loss for the past several years. If the West Division were eliminated, its traceable fixed costs could be avoided. Total common corporate costs would be unaffected by this decision. Given these data, the elimination of the West Division would result in an overall company net operating income of:
A) $100,000
B) $80,000
C) $120,000
D) $50,000