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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 $ 514,000 $ 274,000 $ 226,000 $ 1,014,000
Variable costs 178,000 124,300 100,400 402,700
Contribution/segment margin $ 336,000 $ 149,700 $ 125,600 $ 611,300
Common fixed costs (allocated) 267,000 153,250 121,750 542,000
Net operating income (loss) $ 69,000 $ (3,550) $ 3,850 $ 69,300

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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