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Power Inc. has two divisions, Windsor and Ridge. Following is the income statement for the past month: Windsor Sales $360,800 Variable costs 280,800 Contribution Margin
Power Inc. has two divisions, Windsor and Ridge. Following is the income statement for the past month: Windsor Sales $360,800 Variable costs 280,800 Contribution Margin $ 80,000 Fixed Costs (allocated) 121,000 Profit Margin $(41,000) Ridge Total $320,600 $681,400 150,800 $431,600 $169,800 $249,800 128,800 $249,800 41,000 $ What would Power's profit margin be if the Windsor division was dropped and all fixed costs are unavoidable? Multiple Choice o so O $80,000 loss O $41,000 pront $80.000 profit
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