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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 Lime
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 Total Sales Variable Costs Contribution Margin Fixed Costs (allocated) Profit Margin $507,000 272,500 S 227,000 1,006,500 411,100 595,400 564,000 $51,000 $ (22,250) S 2,650 31,400 186,000 321,000 270,000 124,500 148,000 170,250 100,600 126,400 123,750 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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