3 Davenport Inc. has two divisions, Howard and Jones. Following is the income statement for the past month: Jones Total $ Howard 800,000 600,000 200,000 150,000 600,000 580,000 20,000 $ $ $ Sales Variable Costs Contribution Margin $ Fixed Costs (allocated) Profit Margin S $ 1,400,000 1,180,000 220,000 300,000 (80,000) 150,000 50,000 $ (130,000) $ What would Davenport's profit margin be if the Jones division was dropped? A. $80,000 loss B. $100,000 loss C. $50,000 profit D. $70,000 profit 4. Dundee Company currently produces three products from a joint process. The joint process has total costs of $250,000 per month. All three products, A, B & C, are immediately saleable as they come out of the joint process. Alternatively, any of the products could continue on with additional processing and be sold as a more complete product. The following information is available: Units Immediate Sales Price Later Sales Price A B 50,000 75,000 100,000 $ $ $ 5 10 15 $ $ $ 10 15 20 $ $ $ Unit Cost of Further Processing 6 4 3 Which of the products should be sold after further processing? A. Product A only B. Products B and C C. Products A and C D. Product B only