Water Inc. makes deep sea two-stage submersible pods for oceanic deep sea exploration and has two segments, Alloy and Stainless. Additional information:

	Alloy				Stainless			Total
Sales	$	362,900			$	322,700		$	685,600
Variable Costs		283,000				152,500		$	435,500
Contribution Margin	$	79,900			$	170,200		$	250,100
Fixed Costs (allocated)		118,800				131,300		$	250,100
Profit Margin	$	(38,900	)		$	38,900		$	0

What would Water's profit margin be if the Alloy division was dropped and all fixed costs are unavoidable Allocated costs can not be reduced if Alloy was shut down. If the Company shuts down Alloy - income would be?

• $0

• $79,900 loss

• $38,900 profit

• $79,900 profit