Sondi, Inc has two divisions, Pickens and Sobo. Following is the income statement for the previous year.
Pickens Sobo
Sales $600,000 $400,000
less: Variable costs $195,000 $250,000
= Contribution Margin $405,000 $150,000
less: Fixed Costs $175,000 $170,000
=Profit Margin $230,000 $-20,000

* Of the total fixed costs, $300,000 are common fixed costs that are allocated equally between the divisions. What would Sondi's profit margin be if Sobo were dropped? What is Picken's segment margin?