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Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable Following is the income previous year: Sales Variable costs Contribution Margin Fixed Costs (allocated) Profit Margin Granite $514,000 176,000 338,000 266,000 $ 72,000 Lime Nina $ 271,500 $229,000 124,490 100,200 147,100 128,800 165,250 107,750 $ (18,150) $ 21,050 Total $1,014,500 400,600 613,900 539,000 $ 74,900 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