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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 Variable Costs Contribution Margin $517,000 $274,000 $226,000 $1,017,000 191,000 124,400 100,100 415,500 326,000 149,600 125,900 601,500 Fixed Costs (allocated) 267,000 154,250 107,750 529,000 Profit Margin $ 59,000 $ (4,650) $ 18,150 $ 72,500 26 a. What would Rock's profit margin be if the Lime division were dropped
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