Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 Lime $514,000 $ 273,500 189,000 124,400 Nina $229,000 100,600 128,400 122,750 Total $1,016,500 414,000 602,500 547,000 55,500 325,000 149, 100 262,000 162,250 $ 63,000 $ (13,150) $ 5,650 $ a. What would Rock's profit margin be if the Lime division were dropped?
What would be Rock's profit margin be if the Nina division were dropped?
image text in transcribed
Pock the, has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable. Following is the income statement for the provious yowr: a. What would Rock's profit margin be if the Lime division were dropped

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Place Of Internal Audit And Management Control In Performance The Case Of The Bank

Authors: Hind Ben Khayat

1st Edition

6205968371, 978-6205968376

More Books

Students also viewed these Accounting questions