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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 $ 217,500 $217,500 195,750 65,250 21,750 152, 250 78,300 78,300 $ (56,550) $ 73,950 Total $435,000 261,000 174,000 156,600 $ 17,400 What would Market's profit margin be if the Talbot division was dropped and all fixed costs are unavoidable? Multiple Choice O $56,550 loss $4,350 loss $73,950 profit $174,000 profit
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