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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: Sales Variable

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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: Sales Variable Costs Contribution Margin Fixed Costs (allocated) Profit Margin Granite $513,000 182,000 331,000 264,000 $ 67,000 Lime Nina Total $273,500 $228,000 $1,014,500 124,000 100,400 406,400 149,500 127,600 608,100 152,250 115,7501 532,000 $ 2,750) $ 11,850 $ 76,100 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 dronn

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