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Harry Inc. has two divisions, A and B. Following is the income statement for the previous year: Sales Variable costs Contribution Margin Fixed Costs (allocated)

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Harry Inc. has two divisions, A and B. Following is the income statement for the previous year: Sales Variable costs Contribution Margin Fixed Costs (allocated) Profit Margin B Total $560,800 $337,000 $897,800 177,100 174,800 351,900 383,700 162,200 545,900 285,075 171,525 456,600 $ 98,625 $ (9,325) $ 89,300 What would Harry's profit margin be if Division B was dropped, assuming fixed costs are unavoidable? Multiple Choice $89,300 profit $98,625 profit $383700 profit $72,900 loss

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