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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 Granite
Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable. Following is the income statement for the previous year Sales Granite $516,000 $ 270,500 Lime Nina $225,000 Total $1,011,500 Variable Costs 182,000 124,600 100,800 407,400 Contribution Margin. 334,000 145,900 124,200 604,100 Fixed Costs (allocated) 263,000 160,250 113,750 537,000 Profit Margin $ 71,000 $ (14,350) $ 10,450 $ 67,100 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 dropped
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