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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 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 $583,800 192,000 311,000 258,888 $ 53,899 Lime Nina Total $ 275,000 $226, eee $1,084, eee 124,80e 180, 300 417, les 158,280 125,790 586,900 170,250 189,750 538, eee (29,050) $ 15,950 48,900 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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