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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 Line

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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 Line Nina Total Sales $520,000 $274,500 $227,000 $1,021,500 Variable costs 195,000 124,100 100,600 419,700 Contribution Margin 325,000 150,400 126,400 601,800 Fixed Costs (allocated) 273,000 152,250 119,750 545,000 Profit Margin $ 52,000 $ (1,850) $ 6,650 $ 56,800 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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