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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
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 $ 512,000 179, eee 333,000 273, eee $ 60, eee Lime Nina $ 274,00 $ 225, eee 124,400 100,900 149,600 124,100 156,25e 116, 750 $ (6,650 $ 7,350 Total $1,011, eee 484,300 686,700 546, cee $ 60, 70e 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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