Rock Inc Has Three Divisions, Granite, Lime and Nina

question 5

Essay

Rock Inc. has three divisions, Granite, Lime and Nina. All fixed costs are unavoidable. Following is the income statement for the previous year: a. What would Rock's profit margin be if the Lime division were dropped?
b. What would Rock's profit margin be if the Nina division were dropped?

---

Definitions:

Groupthink

A mental event happening among a group where the need for agreement or uniformity leads to a choice that is illogical or not functional.

Collective Efficacy

Collective efficacy refers to the shared belief in a group's abilities to organize and execute the courses of action required to achieve given objectives.

False Consensus

A cognitive bias where people overestimate how much others agree with their own beliefs, behaviors, and attitudes.

Brainstorming

A group creativity technique designed to generate a large number of ideas for the solution to a problem in an uninhibited, non-judgmental environment.