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Maiden Rock Inc. has two divisions, Bay City and Stockholm. Following is the income statement for the past month: Sales Variable Costs Contribution Margin Fixed
Maiden Rock Inc. has two divisions, Bay City and Stockholm. Following is the income statement for the past month: Sales Variable Costs Contribution Margin Fixed Costs (allocated) Profit Margin Bay City Stockholm $280,000S168,000 67,000 101,000 67,500 33,500 168,000 112,000 112,500 - 500 Total $448,000 235,000 213,000 180,000 33,000 What would Maiden Rock's profit margin be if the Bay City division was dropped? $500 loss O $79,000 loss $33,500 proft O $213,000 profit
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