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Rock IncHas Three Divisions,Granite,Lime and Nina

Question 124

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

Correct Answer:

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a.($100,000)= $325,000 + 125,000 - 550,0...

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