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Market Inc. has two divisions, Talbot and Heather. Following is the income statement for the past month: Sales Variable Costs Talbot $247,000 Heather $247,000
Market Inc. has two divisions, Talbot and Heather. Following is the income statement for the past month: Sales Variable Costs Talbot $247,000 Heather $247,000 Total $494,000 180,550 86,450 267,000 Contribution Margin 66,450 160,550 227,000 Fixed Costs (allocated) 81,450 81,450 162,900 Profit Margin $(15,000) $ 79,100 $ 64,100 What would Market's profit margin be if the Talbot division was dropped and all fixed costs are unavoidable? Multiple Choice $2,350 loss $79,100 profit $15,000 loss $227,000 profit D
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