ABCDE Inc. has three divisions: AB, CD, and E. All fixed costs are unavoidable. Following is the income statement for the previous year: Sales Variable Costs Contribution Margin Fixed Costs (allocated) Profit Margin AB CD E Total $505,000 $ 271,500 183,000 $225,000 124,700 101,000 $1,001,500 408,700 322,000 146,800 124,000 592,800 264,000 166,250 109,750 540,000 $ 58,000 $ (19,450) $ 14,250 $ 52,800 a. What would company's profit margin be if the CD division were dropped? Profit Loss b. What would company's profit margin be if the E division were dropped