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Power Inc. has two divisions, Windsor and Ridge. Following is the income statement for the past month: Sales Variable costs Contribution Margin Fixed Costs (allocated)
Power Inc. has two divisions, Windsor and Ridge. Following is the income statement for the past month: Sales Variable costs Contribution Margin Fixed Costs (allocated) Profit Margin Windsor Ridge Total $361,700 $321,400 $683,100 281,600 151,300 $432,900 $ 80,100 $ 170,100 $250,200 120,500 129,700 $250,200 $ (40, 400) $ 40,400 $ 0 What would Power's profit margin be if the Windsor division was dropped and all fixed costs are unavoidable? Multiple Choice $0 $40,400 profit $80,100 profit $80,100 loss
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