Rock Inc. has three division, Granite, Lime and Nina. All fixed costs are unavoldable Following is the
Question:
a. What would Rock's profit margin be if the Lime division was dropped?
b. What would Rock's profit margin be if the Nina division was dropped?
Transcribed Image Text:
Lime Nina Total Granite $ 516,000 $ 274,500 $ 230,000 $1,020,500 124,600 Sales Variable Costs 100,700 403,300 Contribution Margin Fixed Costs (allocated) 338,000 129,300 105,750 149,900 155,250 532,000 271,000 Profit Margin (5,350) 23,550 85,200 67,000
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Financial Accounting for Decision Makers
ISBN: 978-0273763451
6th Edition
Authors: Peter Atrill, Eddie McLaney
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