The management accountant for Giada's Book Store has prepared the following income statement for the most current year:

If the cookbook product line had been discontinued prior to this year, the company would have reported ________.
A) greater corporate profits
B) the same amount of corporate profits
C) less corporate profits
D) resulting profits cannot be determined

Question

The management accountant for Giada's Book Store has prepared the following income statement for the most current year:

If the cookbook product line had been discontinued prior to this year, the company would have reported ________.
A) greater corporate profits 
B) the same amount of corporate profits 
C) less corporate profits 
D) resulting profits cannot be determined

Quizplus · Accepted Answer

$63,000 - $37,000 - $19,000 - $3,000 = $4,000
The cookbook product line contributed $4,000 toward corporate profits. Without the cookbooks, corporate profits would be $4,000 less than currently reported.

The Management Accountant for Giada's Book Store Has Prepared the Following