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Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable. Following is the income mement for the previous year Sales Variable
Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable. Following is the income mement for the previous year Sales Variable costs Contribution Margin Fixed Costs (allocated) Profit Margin Granite 5508,000 178,000 330,000 274,000 $ 56,000 Line tina $ 272,000 $229,000 124,400 100,600 147.600 128,400 169,250 122,250 $ (21,650) S 5,650 Total $1,009,000 403,000 606,000 566,000 $ 40,000 a. What would Rock's profit margin be if the Lime division were dropped? a. What would Rock's profit margin be if the Lime division were dropped? b. What would Rock's profit margin be if the Nina division were dropped
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