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EXPLAIN ALL Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable Following is the income statement for the previous year:
EXPLAIN ALL
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 | |||||
Sales | $ | 507,000 | $ | 270,000 | $ | 226,000 | $ | 1,003,000 |
Variable Costs | 180,000 | 124,600 | 100,900 | 405,500 | ||||
| | | | |||||
Contribution Margin | 327,000 | 145,400 | 125,100 | 597,500 | ||||
Fixed Costs (allocated) | 258,000 | 154,250 | 111,750 | 524,000 | ||||
| | | | |||||
Profit Margin | 69,000 | (8,850) | 13,350 | 73,500 | ||||
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a. | What would Rock |
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