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

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

Lime Nina Total Granite $ 516,000 $ 274,500 $ 230,000 $1,020,500 124,600 Sales Variable Costs 100,700 403,300 Contributi

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?

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Financial Accounting for Decision Makers

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Authors: Peter Atrill, Eddie McLaney

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Question Posted: Mar 05, 2018 10:30 AM

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

Question:

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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