Lakeland Financial Services provides outsourcing services for three areas: payroll, general ledger (GL), and tax compliance. The company is currently contemplating the elimination of the GL area because it is showing a pre-tax loss. An annual income statement follows.

Lakeland Financial Services
Income Statement by Service Line
For the Year Ended July 31
(in thousands)
	Payroll	GL	Tax	Total
Sales	$6,160	$4,480	$5,040	$15,680
Cost of sales	(3,920)	(2,800)	(3,024)	(9,744)
Gross margin	$2,240	$1,680	$2,016	$5,936
Avoidable fixed and variable costs	$1,764	$2,058	$1,456	$5,278
Allocated fixed costs	252	196	294	742
Total fixed costs	$2,016	$2,254	$1,750	$6,020
Operating profit	$224	$(574)	$266	$(84)

If the GL area were dropped, how would the companys pre-tax profit be affected? Note: Do not use a negative sign with your answer.

a. Dropping the segment would result in an incremental gain of $