Simpson Corporation operates two division with the following operating results

Simpson Corporation operates two division with the following operating results from last year:

Western Division Eastern Division Total

Sales 620000 290000 $900000

Variable costs 310000 200000 $510000

contributing margin 310000 90000 $400000

avoidable fixed costs 110000 70000 $180000

allocated fixed costs 90000 45000 $135000

operating income (loss) 100000 (25000) $75000

Management is considering wether the Eastern Division should be discontinued since it incurred an operating lost last year. Allocated common fixed cost would
continue for Simpson Corporation whether the division is discontinued or not.

If the Eastern Division has been discontinued at the beginning of last year what would be the total operating income for Simpsom Corporation have been for the
year?