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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 $ 516,000 195,000 321,200 259,000 $ 62,800 Lime Nina Total $ 270,000 $229,000 $1,015,800 124.500 100, 200 419,700 145,500 128,800 595,300 167,25 121,750 548,000 $ (21,750) $7,058 47.300 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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