Question
3. The management accountant for the C.R. Groceries has prepared the following segmented income statement for the most current year. Produce Fish & Meat Sundries
3. The management accountant for the C.R. Groceries has prepared the following segmented income statement for the most current year. Produce Fish & Meat Sundries Total Sales $80,000 $120,000 $60,000 $220,000 Variable expenses 36,000 65,000 20,000 121,000 Contribution margin 44,000 55,000 40,000 99,000 Other costs 18,000 21,000 8,000 47,000 Segment margin 26,000 34,000 32,000 52,000 Allocated avoidable costs 2,000 3,000 3,000 8,000 Segment income 24,000 31,000 29,000 44,000 Allocated corporate costs 7,000 7,000 7,000 21,000 Corporate profit $17,000 $ 24,000 $ 22,000 $ 23,000 If the Fish & Meat department had been discontinued, the short-term effect on corporate profits would be a decrease of?
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