Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable Following is the income statement for the previous year:

Granite Lime Nina Total

Sales $ 508,000 $ 273,500 $ 229,000 $ 1,010,500

Variable Costs 188,000 124,700 100,400 413,100

Contribution Margin 320,000 148,800 128,600 597,400

Fixed Costs (allocated) 259,000 160,250 105,750 525,000

Profit Margin $ 61,000 $ (11,450 ) $ 22,850 $ 72,400

a. What would Rocks profit margin be if the Lime division were dropped?

b. What would Rocks profit margin be if the Nina division were dropped?