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

Question

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

Quizplus · Accepted Answer

The Answer of 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

Clay Inc Has Two Divisions, Myrtle and Laurel