Clay Inc Has Two Divisions, Myrtle and Laurel

question 36

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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Definitions:

Authentic Leadership

A leadership style that is genuine and transparent, encouraging leaders to be themselves and act with integrity.

Social Capital

The networks of relationships among people who live and work in a particular society, enabling society to function effectively.

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Mental conditions marked by contentment, optimism, and well-being, enhancing personal and professional life quality.

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A leadership approach that is guided by respect for ethical beliefs and values, and for the dignity and rights of others, promoting honesty, integrity, and fairness.