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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: Sales revenue Variable costs Contribution/segment margin Common fixed costs (allocated) Net operating income (loss) Required: Granite $ 505,000 192,000 $ 313,000 263,000 $ 50,000 Lime $ 274,000 124,100 $ 149,900 162,250 $ (12,350) 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? Required A Required B Complete this question by entering your a Assessment Tool iFrame below. What would Rock's income (loss) be if the Lime Division were dropped? Nina $ 229,000 100, 200 $ 128,800 112,750 $ 16,050 Total $ 1,008,000 416,300 $ 591,700 538,000 $ 53,700
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