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

	Myrtle			Laurel				Total
Sales	$	561,900		$	338,100			$	900,000
Variable Costs		178,300			175,900				354,200
Contribution Margin		383,600			162,200				545,800
Fixed Costs (allocated)		286,375			172,725				459,100
Profit Margin	$	97,225		$	(10,525	)		$	86,700

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

$383,600 profit

$75,500 loss

$86,700 profit

$97,225 profit