Question
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$ 511,000 $ 274,000 $ 230,000 $ 1,015,000 Variable Costs 181,000 124,800 100,800 406,600 Contribution Margin 330,000 149,200 129,200 608,400 Fixed Costs (allocated) 261,000 168,250 104,750 534,000 Profit Margin 69,000 (19,050) 24,450 74,400
a. What would Rocks profit margin be if the Lime division was dropped
b. | What would Rocks profit margin be if the Nina division was dropped? |
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