Segment a Had Sales Revenue of $900,000 and the Following

Multiple Choice

Segment A had sales revenue of $900,000 and the following costs: direct materials, $252,000; direct labor, $36,000; variable manufacturing overhead, $72,000; and fixed manufacturing overhead, $315,000. If segment A is dropped, 25% of the fixed manufacturing overhead costs would be avoided. Calculate the segment profit.

A) $225,000
B) $303,750
C) $461,250
D) $540,000