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2 points 15) The management accountant for the Company Production ONE has prepared the following income statement for the most current year: Product I Product
2 points 15) The management accountant for the Company Production ONE" has prepared the following income statement for the most current year: Product I Product 2 Product3 Total $40,000 $35,000 35,000 S100,000 26,000 25.00 19.000 60,000 Sales Cost of goods sold Contribution margin Delivery and ordering costs Rent (Corporate Office) Allocated corporate costs 16,000 40,000 2,000 8,000 2,000 7,000 5,000 15,000 S4000 S000) S0 10.000 Do you recommend discontinuing the product line of "Product 2? Why or why not? 14,000 10,000 2,000 2,000 5,000 3,000 2,000 5.000 5.000 Corporate profit 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 discontinue in Product 2 because this product line contributes $(1,000) losses. C) No, I would not recommend discontinuing Product 2 because this product line contributes $4,000 towards corporate costs and profits. D) None of these answers Show your work
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