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Rock Incorporated has three divisions, Granite, Lime and Nina. All fixed costs are common and unavoidable. Following is the income statement for the previous
Rock Incorporated has three divisions, Granite, Lime and Nina. All fixed costs are common and unavoidable. Following is the income statement for the previous year: Sales revenue Variable costs Contribution/segment margin Common fixed costs (allocated) Net operating income (loss) Required: Lime $ 273,500 124,500 $ 149,000 164,250 Granite $ 508,000 179,000 $ 329,000 267,000 $ 62,000 $ (15,250) Nina $ 225,000 100,800 $ 124,200 112,750 $ 11,450 Total $ 1,006,500 404,300 $ 602,200 544,000 $ 58,200 a. What would Rock's income (loss) be if the Lime Division were dropped? b. What would Rock's income (loss) be if the Nina Division were dropped? Complete this question by entering your answers in the tabs below. Required A Required B What would Rock's income (loss) be if the Lime Division were dropped? Required A Required B >
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