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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

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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 Nina Total Sales $502,000 $273,000 $228,000 $1,003,000 Variable costs 186,000 124, 200 100, 100 410,300 Contribution Margin 316,000 149,800 127,900 592, 700 Fixed costs (allocated) 250,000 167,250 110, 750 534,000 Profit Margin $ 60,000 $18,450 $ 17,150 $ 58,700 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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