Power Inc. has two divisions, Windsor and Ridge. Following is the income statement for the past month:

	Windsor				Ridge			Total
Sales	$	362,100			$	322,000		$	684,100
Variable Costs		282,100				151,700		$	433,800
Contribution Margin	$	80,000			$	170,300		$	250,300
Fixed Costs (allocated)		120,200				130,100		$	250,300
Profit Margin	$	(40,200	)		$	40,200		$	0

What would Power's profit margin be if the Windsor division was dropped and all fixed costs are unavoidable?

Multiple Choice

• $40,200 profit

• $0

• $80,000 profit

• $80,000 loss