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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 $ 508,000 $ 275,000 $ 228,000 $ 1,011,000 Variable Costs 186,000 124,100 100,500 410,600 Contribution Margin 322,000 150,900 127,500 600,400 Fixed Costs (allocated) 269,000 161,250 117,750 548,000 Profit Margin $ 53,000 $ (10,350 ) $ 9,750 $ 52,400 a. What would Rocks profit margin be if the Lime division were dropped? b. What would Rocks profit margin be if the Nina division were dropped
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