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9 Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable. Following is the income statement for the previous year: 7:04
9 Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable. Following is the income statement for the previous year: 7:04 Sales Variable Costs Contribution Margin Fixed Costs (allocated) Profit Margin Granite Lime Nina $504,000 $272,500 $226,000 192,000 124,400 100,900 312,000 148, 100 125, 100 268,000 152,250 121,750 $ 44,000 $ (4,150) $ 3,350 Total $1,002,500 417,300 585,200 542,000 $ 43,200 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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