Lucas Inc. has two divisions, Newcastle and Sydney. Following is the income statement for the past month: Newcastle Sydney Total Sales $800,000 $600,000 $1,400,000 Variable Costs 600,000 560,000 $1,160,000 Contribution Margin $200,000 $40,000 $220,000 Fixed Costs (allocated) 150,000 170,000 320,000 Profit Margin $50,000 ($130,000) ($80,000)

What would Lucas' profit margin be if the Sydney division was dropped? A. $80,000 loss B. $100,000 loss C. $50,000 profit D. $120,000 loss