Adrian Cursio & Associates is a consulting business that operates in a rented office in Melbourne CBD, offering taxation, superannuation and insurance advice. The office has a main reception area (servicing all departments) with the remaining floor space allocated to the three departments. The common cost made up of reception wages and rent is totalled at $180,000. If the common cost is allocated on the basis of floor space, what is the profit (or loss) made by the Insurance division?

Select one:

a. A loss of $63,750

b. A profit of $63,750

c. A loss of $33,750

d. A loss of $30,000