Operating Company
Operating Company Has the Following Information Pertaining to Its

Operating Company
Operating Company has the following information pertaining to its two divisions for the current year: $\begin{array}{lrr}&\text { North }\\&\text { Division }&\text { South Division }\\\text { Variable selling and administrative expenses } & \$ 70,000 & \$ 90,000 \\\text { Direct fixed manufacturing expenses } & 35,000 & 100,000 \\\text { Sales } & 300,000 & 500,000 \\\text { Direct fixed selling and administrative expenses } & 30,000 & 70,000 \\\text { Variable manufacturing expenses } & 40,000 & 100,000\end{array}$ Common expenses are $50,000 for the current year.
-Refer to Operating Company. What is the net income?

A) $41,000
B) $65,000
C) $215,000
D) $325,000