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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 Sales
Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable. Following is the income statement for the previous year: Granite Sales $515,000 Variable costs 178,000 Contribution Margin 337,000 Fixed Costs (allocated) 271,000 Profit Margin $ 66,000 Lime Nina $ 272,000 $228,000 124, 100 100, 700 147,900 127,300 159, 250 105,750 $ (11,350) $ 21,550 Total $1,015, 001 402, 801 612, 201 536, 001 $ 76,201 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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