Solved

Answer the Following Questions Using the Information Below:
the Management

Question 181

Multiple Choice

Answer the following questions using the information below:
The management accountant for Giada's Book Store has prepared the following income statement for the most current year:
 Cookbook  Travel Book  Classics  Total  Sales $60,000$100,000$40,000$200,000 Cost of goods sold 36,00065,00020,000121,000 Contribution margin 24,00035,00020,00079,000 Order and delivery processing 18,00021,0008,00047,000 Rent (per sq. foot used)  2,0001,0003,0006,000 Allocated corporate costs 7,0007,0007,00021,000 Corporate profit $(3,000) $6,000$2,000$5,000\begin{array}{lrrrr}&\text { Cookbook }&\text { Travel Book }&\text { Classics }&\text { Total }\\\text { Sales } & \$ 60,000 & \$ 100,000 & \$ 40,000 & \$ 200,000 \\\text { Cost of goods sold } & 36,000 & 65,000 & 20,000 & 121,000 \\\text { Contribution margin } & 24,000 & 35,000 & 20,000 & 79,000 \\\text { Order and delivery processing } & 18,000 & 21,000 & 8,000 & 47,000\\\text { Rent (per sq. foot used) } & 2,000 & 1,000 & 3,000 & 6,000 \\\text { Allocated corporate costs } & 7,000 & 7,000 & 7,000 & 21,000 \\\text { Corporate profit } & \$(3,000) & \$ 6,000 & \$ 2,000 & \$ 5,000\end{array}
-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

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