Hamilton, Inc. has two divisions, Parker and Blaine. Following is the income statement for the previous year:

	Parker			Blaine
Sales	$	675,000		$	675,000
Variable Costs		526,500			582,000
Contribution Margin	$	148,500		$	93,000
Fixed Costs		98,000			98,000
Profit Margin	$	50,500		$	(5,000	)

Of the total fixed costs, $150,000 are common fixed costs that are allocated equally between the divisions. What would Hamilton's profit margin be if Blaine were dropped?

Multiple Choice

• $(24,500)

• $(46,000)

• $24,500

• $155,000