A firm's net profit after all expenses is $200,000 via distribution channel A. This distribution channel has $150,000 of common expenses and $100,000 of separable expenses charged to it. By eliminating distribution channel A, the firm's net profit after all expenses would remain the same.

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Eliminating distribution channel A would remove its $100,000 of separable expenses but would still leave the firm with the $150,000 of common expenses, which are presumably shared among other channels or the firm as a whole. Therefore, the net profit would actually increase by the $100,000 of separable expenses saved, not remain the same.

A Firm's Net Profit After All Expenses Is $200,000 Via