Ben Blum recently graduated from Moonshadow Universitys accounting program. He has been hired as an analyst by Primrose Tire Company and one of his first assigned tasks was to evaluate the North East division of Primrose. This division has been heavily focused on producing a special snow and mud tire. Sales of the special tire have been disappointing and management is now evaluating whether to eliminate the North East division. Ben performed the following analysis and is preparing to address the Board of Directors of Primrose with his recommendation that the North East division should be eliminated, resulting in an increase to total company profit of $49,000.

	All Other Divisions			North East				Total
Sales Revenue	$	3,328,400		$	200,000			$	3,528,400
Cost of goods sold		1,957,040			153,000				2,110,040
Gross profit	$	1,371,360		$	47,000			$	1,418,360
Operating expenses		1,055,880			96,000				1,151,880
Net operating income (loss)	$	315,480		$	(49,000	)		$	266,480

The North East divisions cost of goods sold includes $33,000 in fixed costs and operating expenses include $46,000 in fixed costs. None of the fixed costs will be eliminated if the North East division is discontinued. Required: Based on the data given, complete the following table using incremental analysis. (Loss amounts should be indicated by a minus sign.)

	Continue Not Eliminated Net Income Increase (Decrease) Sales Variable COGS Variable Operating Expenses Contribution Margin Fixed COGS Fixed Operating Expenses 46,000 46,000 Net Operating Income (Loss)