Profit Margin

Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable Following is the income statement for the previous year: Granite Lime Nina Total Sales $ 516,000 $ 274,500 $ 230,000 $1,020,500 Variable Costs 178,000 124,600 100,700 403,300 Contribution Margin 338,000 149,900 129,300 617,200 Fixed Costs (allocated) 271,000 155,250 105,750 532,000 Profit Margin 67,000 (5,350) 23,550 85,200 a. What would Rock?s profit margin be if the Lime division was dropped? Loss b. What would Rock?s profit margin be if the Nina division was dropped? Loss