Rock Incorporated has three divisions, Granite, Lime and Nine. All fixed costs are common and unavoidable....

Transcribed Image Text:

Rock Incorporated has three divisions, Granite, Lime and Nine. All fixed costs are common and unavoidable. Following is the income statement for the previous year Sales revenue Variable costs Contribution/segment margin Common Fixed costs (allocated) Net operating income (loss) Required: $517,000 184,000 $333,000 265,0 $274,500 124,500 $ 149,700 166,250 $228,000 100,000 $127,100 $1,019,500 409,700 $ 609,000 549,000 $ 60,800 $ 68,000 s (16,550) 117,750 $9,350 a. What would Rock's income (loss) be if the Lime Division were dropped? b. What would Rock's income (loss) be if the Nina Division were dropped? Complete this question by entering your answers in the tabs below. Required A Required B What would Rock's income (loss) be if the Lime Division were dropped? Rock Incorporated has three divisions, Granite, Lime and Nina. All fixed costs are common and unavoidable. Following is the income statement for the previous year: $517,000 184,000 $333,000 265,000 $274,500 $228,000 124,000 100,900 $ 149,700 166,250 $127,100 117,750 $ 68,000 $ (16,550) $9,350 Total $1,019,500 409,700 $609,800 549,000 $ 60,000 Sales revenue Variable costs Contribution/segment margin Common fixed costs (allocated) Net operating income (loss) Required: a. What would Rock's income (loss) be if the Lime Division were dropped? b. What would Rock's income (loss) be if the Nina Division were dropped? Complete this question by entering your answers in the tabs be Required A Required What would Rock's income (loss) be if the Nina Division were dropped? Rock Incorporated has three divisions, Granite, Lime and Nine. All fixed costs are common and unavoidable. Following is the income statement for the previous year Sales revenue Variable costs Contribution/segment margin Common Fixed costs (allocated) Net operating income (loss) Required: $517,000 184,000 $333,000 265,0 $274,500 124,500 $ 149,700 166,250 $228,000 100,000 $127,100 $1,019,500 409,700 $ 609,000 549,000 $ 60,800 $ 68,000 s (16,550) 117,750 $9,350 a. What would Rock's income (loss) be if the Lime Division were dropped? b. What would Rock's income (loss) be if the Nina Division were dropped? Complete this question by entering your answers in the tabs below. Required A Required B What would Rock's income (loss) be if the Lime Division were dropped? Rock Incorporated has three divisions, Granite, Lime and Nina. All fixed costs are common and unavoidable. Following is the income statement for the previous year: $517,000 184,000 $333,000 265,000 $274,500 $228,000 124,000 100,900 $ 149,700 166,250 $127,100 117,750 $ 68,000 $ (16,550) $9,350 Total $1,019,500 409,700 $609,800 549,000 $ 60,000 Sales revenue Variable costs Contribution/segment margin Common fixed costs (allocated) Net operating income (loss) Required: a. What would Rock's income (loss) be if the Lime Division were dropped? b. What would Rock's income (loss) be if the Nina Division were dropped? Complete this question by entering your answers in the tabs be Required A Required What would Rock's income (loss) be if the Nina Division were dropped?