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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) Protit Margin Granite Lime Nina Total $518,000 $ 271,500 $228,000 $1,017,500 191,000 124,300 100,300 415,600 327,000 147,200 127,700 601,900 271,000 162,250 107,750 541,000 $ 56,000 $ (15,050) $ 19,950 $ 60,900 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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