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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
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 $513,000 $ 271,000 $230,000 $1,014,000 Variable 186,000 Costs 124,800 100,700 411,500 Contribution Margin 327,000 146,200 129, 300 602,500 Fixed Costs 265,000 (allocated) 168,250 113,750 547,000 Profit Margin $ 62,000 $ (22,050) $ 15,550 $ 55,500 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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