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: Sales revenue Variable costs Contribution/segment margin Common fixed costs (allocated) Net operating income (loss) Required: Granite $ 510,000 176,000 $ 334,000 258,000 $ 76,000 Line $ 273,500 124,700 $ 148,800 154,250 $ (5,450) 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? Nina $ 230,000 100,500 $ 129,500 108,750 $ 20,750 Total $ 1,013,500 401, 200 $ 612,300 521,000 $ 91,300

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