Clay IncHas Two Divisions,Myrtle and Laurel

question 62

Multiple Choice

Clay Inc.has two divisions,Myrtle and Laurel.Following is the income statement for the previous year: What would Clay's profit margin be if the Laurel division was dropped and all fixed costs are unavoidable?

• A)$99,625 profit
• B)$91,000 profit
• C)$384,000 profit
• D)$71,000 loss

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