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Market Inc. has two divisions, Talbot and Heather. Following is the income statement for the past month: Sales Variable Costs Contribution Margin Fixed Costs (allocated)
Market Inc. has two divisions, Talbot and Heather. Following is the income statement for the past month: Sales Variable Costs Contribution Margin Fixed Costs (allocated) Profit Margin Talbot Heather $256,200 $170,800 179,760 51,240 76,440 119,560 88,680 59, 120 $(12,240) $ 60,440 Total $427,000 231,000 196,000 147,800 $ 48,200 What would Market's profit margin be if the Talbot division was dropped and all fixed costs are unavoidable? Multiple Choice () $12,240 loss $28,240 loss O $60.440 profit $196,000 profit
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