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 theprevious year:SalesVariable CostsContribution MarginFixed Costs (allocated)Profit MarginLossGranite.LineNinaTotal$517,000 $272,000 $226,000 $1,015.000190,000124,500 100,500415,000600,000535,00065,000$ 12327,000125,500259,000106,750$ 68,000 $(21,750) $ 18,750 $a. What would Rock's profit margin be if the Lime division were dropped?147,500169,250b. What would Rock's profit margin be if the Nina division were dropped?

INCOME STATEMENTIncome Statement is one of the Important Financial Statements of the Company. Income…

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...

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