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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 year:

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:

Granite Lime Nina Total
Sales revenue $ 500,000 $ 275,000 $ 225,000 $ 1,000,000
Variable costs 175,000 125,000 100,000 400,000
Contribution/segment margin $ 325,000 $ 150,000 $ 125,000 $ 600,000
Common fixed costs (allocated) 275,000 151,250 123,750 550,000
Net operating income (loss) $ 50,000 $ (1,250) $ 1,250 $ 50,000

Required:

1.What would Rock's income (loss) be if the Lime Division were dropped?

2.What would Rock's income (loss) be if the Nina Division were dropped?

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