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

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Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable Following is the income statement for the previous year: Granite Lime Nina Total Sales $ 511,000 $ 272,000 $ 229,000 $ 1,012,000 Variable Costs 190,000 124,600 100,400 415,000 Contribution Margin 321,000 147,400 128,600 597,000 Fixed Costs (allocated) 274,000 157,250 120,750 552,000 Profit Margin $ 47,000 $ (9,850 ) $ 7,850 $ 45,000 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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