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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

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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 costs Contribution Margin Fixed Costs (allocated) Profit Margin Granite $ 506,000 177,000 329,000 270,000 $ 59,000 Lime Nina $271,500 $227,000 124,300 180,700 147,200 126,300 151,250 121,750 $(4,058) $4,550 Total $1,004,500 482,000 602,500 543,000 $ 59,500 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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