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16) The management accountant for the Company B has prepared the following income statement for the most current year: 2 points roduct Product 2 Product
16) The management accountant for the Company "B" has prepared the following income statement for the most current year: 2 points roduct Product 2 Product 3 540,000 26,000 14,000 Total Sales $35,000 $35,000 $100,000 25,000 19,000 0,000 10,000 16,000 Cost of goods sold Contribution margin Delivery and ordering costs 2,000 Rent of Admin Corp, Office 3,000 Allocated corporate costs 5.000 Corporate profit Do you recommend discontinuing the product line of "Product 2? Why or why not? 2,000 40,000 8,000 3,000 3,000 9,000 5,000 S,000 15,000 $4.000$2,000$6,000 $8,000 A) No, I would not recommend discontinuing Product 2 because this product line contributes $6,000 towards corporate costs and profits. B) Yes, I would recommend discontinuing Product 2 because this product line contributes $(2,000) losses. C) No, I would not recommend discontinuing Product 2 because this product line contributes $3,000 towards corporate costs and profits. D) None of these answers Show your work
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