Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoldable Following is...

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Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoldable Following is the income statement for the previous year: Granite $518,000 $ 271,500 $228,000 $1,017,500 191,000 327,000 271,000 $ 56,000 Lime Nina Total Sales Variable Costs Contribution Margin Fixed Costs (allocated) Profit Margin 100,300 127,700 124,300 147,200 162,250 $ (15,050) $ 19,950 415,600 601,900 541,000 60,900 107,750 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? Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoldable Following is the income statement for the previous year: Granite $518,000 $ 271,500 $228,000 $1,017,500 191,000 327,000 271,000 $ 56,000 Lime Nina Total Sales Variable Costs Contribution Margin Fixed Costs (allocated) Profit Margin 100,300 127,700 124,300 147,200 162,250 $ (15,050) $ 19,950 415,600 601,900 541,000 60,900 107,750 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?

Answer rating: 100% (QA)

a Current profit margin 60900 Add Loss on from Lime division 150... View the full answer