Clay Inc. has two divisions, Myrtle and Laurel. Following is the income statement for the previous year Sales Variable C

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Clay Inc Has Two Divisions Myrtle And Laurel Following Is The Income Statement For The Previous Year Sales Variable C 1 (133.95 KiB) Viewed 33 times

Clay Inc. has two divisions, Myrtle and Laurel. Following is the income statement for the previous year Sales Variable Costs Contribution Margin Fixed Costs (allocated) Profit Margin Myrtle Laurel Total $560,500 $336,700 $897,200 176,700 174,500 351,200 383,800 162,200 546,000 284,875 171,225 456,100 $ 98,925 $ (9,025) $ 89,900 What would Clay's profit margin be if the Laurel division was dropped and all fixed costs are unavoidable? Multiple Choice $72,300 loss $98,925 profit $383.800 profit $89,900 profit