Help Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable....
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Help Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable. Following is the income statement for the previous year: Total $1.013,000 Sales Variable costs Contribution Margin Fixed Costs (allocated) Profit Margin Granite $ 514,000 188,000 326,000 266,000 $ 60,000 Lime $ 273,000 124,800 148,200 160,250 $12,050) $ 226,000 100, 800 125,200 115, 750 9,450 599.400 542.000 57,400 9 a. What would Rock's profit margin be if the Lime division were dropped? b. What would Rock's profit inargin be if the Nina division were dropped? Bayshore, Inc., has collected the following cost data for various levels of activity: Month clients Served Total Cost April 3.000 $39,000 May 2,650 $33,000 June 2,000 $28,800 July 2.400 $30,300 Using the high-low method, determine the variable cost per client served and the total fixed cost. (Round your variable cost to 2 decimal places.) Variable Cost Fixed Cost Per Client Per Month
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