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4. Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable Following is the income statement for the previous year Granite
4. Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable Following is the income statement for the previous year Granite Lime Nina Total $ 509,000 $ 274,500 229,000 1,012.500 Sales Variable Costs Contribution Margin Fixed Costs (alocated) Profit Margin 401,000 611,500 532,000 $ 63,000 $ (4,950) 21,450 79,500 176,000 124,200 100,800 333,000 270,000 155,250 106,750 150,300 128,200 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
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