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15) Power Inc. has two divisions, Windsor and Ridge. Following is the income statement for the past month: Ridge Windsor Total Sales $ 340,000 $360,000
15) Power Inc. has two divisions, Windsor and Ridge. Following is the income statement for the past month: Ridge Windsor Total Sales $ 340,000 $360,000 $ 700,000 Variable Costs 280,000 150,000 $ 430,000 Contribution Margin $ 60,000 $ 210,000 $ 270,000 Fixed Costs (allocated) 122,000 128,000 $ 250,000 Profit Margin $ (62,000) $ 82,000 $ 20,000 What would Power's profit margin be if the Windsor division was dropped and all fixed costs are unavoidable
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