Franklin, Inc. has two divisions, Seward and Charles. Following is the income statement for the previous year:

	Seward		Charles
Sales	$	921,600		$	614,400
Variable Costs		629,480			491,520
Contribution Margin	$	292,120		$	122,880
Fixed Costs		154,800			154,800
Profit Margin	$	137,320		$	(31,920	)

Of the total fixed costs, $250,000 are common fixed costs with the remaining being direct fixed costs. What would Franklin's profit margin be if Charles were dropped?

• $12,320

• $292,120

• $921,600

• $137,320