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4 0/0.75 points awarded Sales Variable Costs Contribution Margin Fixed Costs (allocated) Profit Margin Granite $500,000 Lime $275,000 $225,000 Nina Total $1,000,000 175,000 125,000 100,000

4 0/0.75 points awarded Sales Variable Costs Contribution Margin Fixed Costs (allocated) Profit Margin Granite $500,000 Lime $275,000 $225,000 Nina Total $1,000,000 175,000 125,000 100,000 400,000 325,000 150,000 125,000 275,000 151,250 123,750 600,000 550,000 $ 50,000 $ (1,250) $1,250 $ 50,000 Scored a. What would Rock's profit margin be if the Lime division were dropped? Profit $ 51,250 ( b. What would Rock's profit margin be if the Nina division were dropped? Profit $ 48,750 (

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