4 Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable Following is the income statement for the previous year. Sales Variable costs Contribution Margin Pixed Costs (allocated) Profit Margin Granite $515,000 193,000 322,000 267,000 $ 55,000 Lime Nina $ 270,000 $229,000 124,700 100, 700 145,300 128,300 163,250 122,750 $ 17,950) 5 5,550 Total $1,014,000 418,400 595,600 553,000 $ 42,600 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? Mc Hill Graw