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Saved Clay Inc. has two divisions, Myrtle and Laurel. Following is the income statement for the previous year: Help Save Sales Variable costs Contribution Margin

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Saved Clay Inc. has two divisions, Myrtle and Laurel. Following is the income statement for the previous year: Help Save Sales Variable costs Contribution Margin Fixed Costs (allocated) Profit Margin Myrtle Laurel Total $561,000 $337,200 $898, 200 177,300 174,900 352,200 383,700 162,300 546,000 285,175 171,725 456,900 $ 98,525 $ (9,425) $ 89,100 What would Clay's profit margin be if the Laurel division was dropped and all fixed costs are unavoidable? Multiple Choice $98,525 profit $89,100 profit $383,700 profit $73,200 loss

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