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

	Parker			Blaine
Sales	$	789,000		$	789,000
Variable Costs		520,800			631,200
Contribution Margin	$	268,200		$	157,800
Fixed Costs		198,450			198,450
Profit Margin	$	69,750		$	(40,650	)

Of the total fixed costs, $390,000 are common fixed costs that are allocated equally between the divisions. What would Hamilton's profit margin be if Blaine were dropped?

Multiple Choice

• $29,100

• $(125,250)

• $125,250

• $(6,900)