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 $ $ $ $

Variable costs

Contributionsegment margin $ $ $ $

Common fixed costs allocated

Net operating income loss $ $ $ $

Required:

What would Rock\'s income loss be if the Lime Division were dropped?

What would Rock\'s income loss be if the Nina Division were dropped?

Answer rating: 100% (QA)

To calculate Rock Incorporateds income loss if the Lime Division were dropped we need to subtract th... View the full answer