The following information pertains to Utility Products Inc.:
	Brooms	Mops	Total
Sales	$ 600,000	$ 400,000	$ 1,000,000
Variable Costs	420,000	180,000	600,000
Contribution Margin	$ 180,000	$ 220,000	$ 400,000
Less Direct fixed costs	50,000	150,000	200,000
Segment margin	$ 130,000	$ 70,000	$ 200,000
allocated Common Costs	40,000	80,000	120,000
Net Income	$ 90,000	$ (10,000)	$ 80,000
Since the Mops division is operating at a loss should it be dropped? Why?
If the Mops division is dropped what will happen to the profits of Utility Products? Support your answer with computations.