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Hamilton, Inc. has two divisions, Parker and Blaine. Following is the Income statement for the previous year. Parker Blaine Sales $751, 500 $751, 500 Variable
Hamilton, Inc. has two divisions, Parker and Blaine. Following is the Income statement for the previous year. Parker Blaine Sales $751, 500 $751, 500 Variable Costs 518, 225 638, 775 Contribution Margin $233, 275 $112, 725 Fixed Costs 152 , 800 152 , 800 Profit Margin $ 80, 475 $ (40, 075) Of the total fixed costs, $300,000 are common fixed costs that are allocated equally between the divisions. What would Hamilton's profit margin be if Blaine were dropped? Multiple Choice O $40,400 O $(5,600)
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