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rated 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 $ 519,000 188,000 $ 331,000 263,000 $ 68,000 Line $274,000 124,300 $ 149,700 155,250 $(5,550) 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 $225,000 100,200 $ 124,800 119,750 $ 5,050 Total $ 1,018,000 412,500 $ 605,500 538,000 $ 67,500

rated 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 $ 519,000 188,000 $ 331,000 263,000 $ 68,000 Line $274,000 124,300 $ 149,700 155,250 $(5,550) 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 $225,000 100,200 $ 124,800 119,750 $ 5,050 Total $ 1,018,000 412,500 $ 605,500 538,000 $ 67,500

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $ 519,000 188,000 $ 331,000 263,000 $ 68,000 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? Line Nina $274,000. $ 225,000 124,300 100,200 $ 149,700 $ 124,800 155,250 119,750 $ (5,550) $ 5,050 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? Required A Required B > Total $1,018,000. 412,500 $ 605,500 538,000 $ 67,500
Transcribed Image Text: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 $ 519,000 188,000 $ 331,000 263,000 $ 68,000 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? Line Nina $274,000. $ 225,000 124,300 100,200 $ 149,700 $ 124,800 155,250 119,750 $ (5,550) $ 5,050 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? Required A Required B > Total $1,018,000. 412,500 $ 605,500 538,000 $ 67,500
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