The management accountant for Giada's Book Store has prepared the following income statement for the most current year. Travel Book Classics Total $50,000 $262,000 132,000 Sales Cost of goods sold Contribution margin Cookbook $69,000 39.000 30,000 22,000 2000 Order and delivery processing Rent (per sq. foot used) Allocated corporate costs Corporate profit 10,000 $(4000) $135,000 69,000 66,000 21,000 4000 10.000 $31,000 24,000 34,000 13,000 5000 10,000 $6000 $33.000 130,000 56,000 11,000 30.000 If the cookbook product line had been discontinued prior to this year, the company would have reported O greater corporate profits the same amount of corporate profits less corporate profits resulting profits cannot be determined

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 16
The management accountant for Giada's Book Store has prepared the following income statement for the most current year:
Travel Book Classics
Total
$50,000
24,000
34,000 130,000
13,000
56,000
5000
10,000
$6000
Sales
Cost of goods sold
Contribution margin
Cookbook
$69,000
39.000
Order and delivery processing
Rent (per sq. foot used)
Allocated corporate costs
Corporate profit
30,000
22,000
2000
10,000
$(4000)
$135,000
69,000
66,000
21,000
4000
10,000
$31,000
$262,000
132,000
11,000
30.000
$33.000
If the cookbook product line had been discontinued prior to this year, the company would have reported
greater corporate profits
the same amount of corporate profits
less corporate profits
resulting profits cannot be determined
Transcribed Image Text:Question 16 The management accountant for Giada's Book Store has prepared the following income statement for the most current year: Travel Book Classics Total $50,000 24,000 34,000 130,000 13,000 56,000 5000 10,000 $6000 Sales Cost of goods sold Contribution margin Cookbook $69,000 39.000 Order and delivery processing Rent (per sq. foot used) Allocated corporate costs Corporate profit 30,000 22,000 2000 10,000 $(4000) $135,000 69,000 66,000 21,000 4000 10,000 $31,000 $262,000 132,000 11,000 30.000 $33.000 If the cookbook product line had been discontinued prior to this year, the company would have reported greater corporate profits the same amount of corporate profits less corporate profits resulting profits cannot be determined
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