Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable. Following is the income statement for the previous year: Sales Variable Costs Contribution Margin Fixed Costs (allocated) Profit Margin Granite. Lime Nina Total $517,000 $272,000 $226,000 $1,015.000 190,000 124,500 100,500 415,000 327,000 147,500 125,500 600,000 259,000 169,250 106,750 535,000 $ 68,000 $(21,750) $ 18,750 $ 65,000 a. What would Rock's profit margin be if the Lime division were dropped? Loss TS 12 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 unavoidable. Following is the income statement for the previous year: Sales Variable Costs Contribution Margin Fixed Costs (allocated) Profit Margin Granite. Lime Nina Total $517,000 $272,000 $226,000 $1,015.000 190,000 124,500 100,500 415,000 327,000 147,500 125,500 600,000 259,000 169,250 106,750 535,000 $ 68,000 $(21,750) $ 18,750 $ 65,000 a. What would Rock's profit margin be if the Lime division were dropped? Loss TS 12 b. What would Rock's profit margin be if the Nina division were dropped?
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter19: Variable Costing (varcost)
Section: Chapter Questions
Problem 4R: To determine the effect of different levels of production on the company’s income, move to cell B7...
Related questions
Question
Please do not give image format
![Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable. Following is the income statement for the
previous year:
Sales
Variable Costs
Contribution Margin
Fixed Costs (allocated)
Profit Margin
Loss
Granite.
Line
Nina
Total
$517,000 $272,000 $226,000 $1,015.000
190,000
124,500 100,500
415,000
600,000
535,000
65,000
$ 12
327,000
125,500
259,000
106,750
$ 68,000 $(21,750) $ 18,750 $
a. What would Rock's profit margin be if the Lime division were dropped?
147,500
169,250
b. What would Rock's profit margin be if the Nina division were dropped?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F88616eef-8ea4-4757-b701-b28470c8d1d6%2F0131fbdf-9531-4102-9f61-691382bd7ba4%2F4p9v71o_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable. Following is the income statement for the
previous year:
Sales
Variable Costs
Contribution Margin
Fixed Costs (allocated)
Profit Margin
Loss
Granite.
Line
Nina
Total
$517,000 $272,000 $226,000 $1,015.000
190,000
124,500 100,500
415,000
600,000
535,000
65,000
$ 12
327,000
125,500
259,000
106,750
$ 68,000 $(21,750) $ 18,750 $
a. What would Rock's profit margin be if the Lime division were dropped?
147,500
169,250
b. What would Rock's profit margin be if the Nina division were dropped?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning
![Excel Applications for Accounting Principles](https://www.bartleby.com/isbn_cover_images/9781111581565/9781111581565_smallCoverImage.gif)
Excel Applications for Accounting Principles
Accounting
ISBN:
9781111581565
Author:
Gaylord N. Smith
Publisher:
Cengage Learning