Question
Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoldable Following is the income statement for the previous year: Granite
Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoldable Following is the income statement for the previous year: Granite $518,000 $ 271,500 $228,000 $1,017,500 191,000 327,000 271,000 $ 56,000 Lime Nina Total Sales Variable Costs Contribution Margin Fixed Costs (allocated) Profit Margin 100,300 127,700 124,300 147,200 162,250 $ (15,050) $ 19,950 415,600 601,900 541,000 60,900 107,750 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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Financial Accounting: A Business Process Approach
Authors: Jane L. Reimers
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