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

	Myrtle			Laurel				Total
Sales	$	562,500		$	338,900			$	901,400
Variable Costs		178,900			176,700				355,600
Contribution Margin		383,600			162,200				545,800
Fixed Costs (allocated)		287,175			173,225				460,400
Profit Margin	$	96,425		$	(11,025	)		$	85,400

What would Clays profit margin be if the Laurel division was dropped and all fixed costs are unavoidable?

$383,600 profit

$76,800 loss

$85,400 profit

$96,425 profit