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

image text in transcribed

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 Nina $ 516,000 $ 270,500 $228,000 180,000 124,900 100, 200 336,000 145,600 127,800 267,000 168,250 115, 750 $ 69,000 $ (22,650) $ 12,050 Total $1,014,500 405, 100 609,400 551,000 $ 58,400 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

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

The Human Resource Planning Audit

Authors: Peter Reilly

1st Edition

1907766111, 978-1907766114

More Books

Students also viewed these Accounting questions