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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)

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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 $560,500 176,700 383,800 284,875 $ 98,925 Laurel Total $336,700 $897,200 174,500 351,200 162,200 546,000 171,225 456,100 $ (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 $89,900 profit O $383,800 profit $98,925 profit

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