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Clay IncHas Two Divisions,Myrtle and Laurel

Question 82

Multiple Choice

Clay Inc.has two divisions,Myrtle and Laurel.Following is the income statement for the previous year: 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 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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