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Saved Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable. Following is the income statement for the previous year Sales

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Saved Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable. Following is the income statement for the previous year Sales Variable costs Contribution Margin Fixed Costs (allocated) Profit Margin Granite Lime Nina Total $517,000 $ 274,000 $226,000 $1,017,000 193,000 124,200 100,400 417,600 324,000 149,800 125,600 599,400 270,000 169,250 115,750 555,000 $ 54,800 $ (19,450) $ 9,850 44,400 a. What would Rock's profit margin be if the Lime division were dropped? b. What would Rock's profit margin be if the Nina division were dropped

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