7. Critical thinking and ethics The management accountant for the Chocolate S'more Company has prepared the following income statement for the most current year: Chocolate Other Candy $40,000 26,000 14,000 Total Fudge $25,000 $35,000 $100,000 19,000 16,000 2,000 2,000 5.000 S7,000 Sales Cost of goods sold Contribution margin Delivery and ordering costs2,000 Rent (per sq. foot used) 3,000 Allocated corporate costs 5,000 Corporate profit 60.000 40,000 7,000 8,000 15,000 $10,000 15,000 10,000 3,000 3,000 5,000 s(1,000) $4,000 a. I pt- Do you recommend discontinuing the Other Candy product line? Why or why not? b. 1 pt If the Chocolate product line had been discontinued, corporate profits for the current year would have decreased by what amount? c. .5 pt - What ethical issues would you consider in closing a department or division in a company