Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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 Costa (allocated) Profit Margin Granite $502,000 175,000 327,000 274,000 $ 53,000 Lime Nina $ 270,500 $226,000 124,300 100,800 146,200 125,200 167,250 118,750 $21,050) $ 6,450 Total $998,500 400, 100 598,400 560,000 $ 38,400 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Finance A Practical Perspective

Authors: Adrian Buckley

1st Edition

0273731866, 9780273731863

More Books

Students also viewed these Accounting questions

Question

6.10 a. Find a z o such that P(-z

Answered: 1 week ago