Solved

Answer the Following Questions Using the Information Below:
the Management

Question 166

Multiple Choice

Answer the following questions using the information below:
The management accountant for Robbie's Sports Shoe Store has prepared the following income statement for the most current year:
 Rugby boots  Football boots  Golf shoes  Total  Sales $60000$100000$40000$200000 Cost of goods sold 360006500020000121000 Contribution margin 24000350002000079000 Order and delivery processing 1800021000800047000 Rent (per sq. metre used)  2000100030006000 Allocated corporate costs 70007000700021000 Corporate profit $(3000) $6000$2000$5000\begin{array} { l r r r r r } & \text { Rugby boots } & \text { Football boots } & \text { Golf shoes } & \text { Total } \\\text { Sales } & \$ 60000 & \$ 100000 & \$ 40000 & \$ 200000 \\\text { Cost of goods sold } & \underline { 36000 } & \underline { 65000 } & \underline { 20000 } & \underline { 121000 } \\\text { Contribution margin } & 24000 & 35000 & 20000 & 79000 \\\text { Order and delivery processing } & 18000 & 21000 & 8000 & 47000 \\\text { Rent (per sq. metre used) } & 2000 & 1000 & 3000 & 6000 \\\text { Allocated corporate costs } & \underline { 7000 } & \underline { 7000 } & \underline { 7000 } & \underline { 21000 } \\\text { Corporate profit } & \underline { \$ ( 3000 ) } & \underline { \$ 6000 } & \underline { \$ 2000 } & \underline { \$ 5000 }\end{array}
-If the football boots line had been discontinued,corporate profits for the current year would have decreased by:


A) $6000
B) $14 000
C) $13 000
D) $35 000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents