Answer:
Company should not eliminate the North division.
Explanation:
Division B is individually making loss. Overall the company is making profit of $50,000.
After eliminating the North division the overall profit will be converted into the loss of $140,000, because the common corporate expenses were shared by the both divisions, eliminating one cause the whole expense to be allocated to a single division.
Company should not eliminate the division as it will increase the total loss.
Working for on which decision is based is attached with this answer please find it.
