Clay Incorporated has two divisions, Myrtle and Laurel. The following is the segmented income statement for the previous year:

	Myrtle	Laurel	Total
Sales	$ 560,000	$ 336,000	$ 896,000
Variable Costs	100,000	100,000	200,000
Contribution Margin	$ 460,000	$ 236,000	$ 696,000
Direct fixed costs	76,000	74,000	150,000
Segment margin	$ 384,000	$ 162,000	$ 546,000
Common fixed costs (allocated)	284,375	170,625	455,000
Net operating income (loss)	$ 99,625	$ (8,625)	$ 91,000

What would Clay's income (loss) be if the Laurel Division was dropped and all common fixed costs are unavoidable?

Multiple Choice

$99,625 profit

$91,000 profit

$384,000 profit

$71,000 loss