4 Rock Inc. has three divisions, Granite, Lime and Nina. Al fixed costs are unavoidable Following is the income statement for the previous year: Sales Variable costs Contribution Margin Fixed Costs (allocated) Profit margin Granite Line Nina Total $565,000 $274,000 $227,000 $1,886,000 180,000 124,800 108,300 405, 100 325,000 149,200 126,700 600,900 266,00 167,250 118,750 552,680 $ 59,00 S (18,050) s 7,950 $ 48,900 a. What would Rock's profit margin be if the Lime division were dropped? b. What would Rock's profit margin be if the Nina division were dropped? a. What would Rock's profit margin be if the Lime division were dropped? 4 Profit LOSS b. What would Rock's profit margin be if the Nina division were dropped? Profit Loss