Taconite Inc. has three divisions, Bovey, Babbit and Hoyt. Following is the income statement for the previous year:
|
Bovey |
Babbit |
Hoyt |
Total |
| Sales |
$ |
517,000 |
$ |
271,500 |
$ |
227,000 |
$ |
1,015,500 |
| Variable Costs |
|
181,000 |
|
124,300 |
|
100,500 |
|
405,800 |
|
|
|
|
|
| Contribution Margin |
|
336,000 |
|
147,200 |
|
126,500 |
|
609,700 |
| Fixed Costs (allocated) |
|
265,000 |
|
152,250 |
|
116,750 |
|
534,000 |
|
|
|
|
|
| Profit Margin |
|
71,000 |
|
(5,050) |
|
9,750 |
|
75,700 |
|
|
|
|
|
|
| a. |
What would Taconite's profit or loss be, if the Babbit division was dropped? (Input the amount as positive value.Omit the "$" sign in your response.)
|
| (Click to select)Profit or Loss? |
$ |
| b. |
What would Taconite's profit or loss be, if the Hoyt division was dropped? (Input the amount as positive value. Omit the "$" sign in your response.)
|
| (Click to select)Profit or Loss? |
$ |