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Cookbook Total Sales Cost of goods sold Contribution margin Order and delivery processing Rent (per sq. foot used) Allocated corporate costs Corporate profit $65,000 37,000
Cookbook Total Sales Cost of goods sold Contribution margin Order and delivery processing Rent (per sq. foot used) Allocated corporate costs Corporate profit $65,000 37,000 28,000 20,000 2,000 7,000 $(1,000) Travel Book $100,000 66,000 34,000 21,000 3,000 7,000 $3,000 Classics $58,000 25,000 33,000 11,000 8,000 7,000 $7,000 $223,000 128,000 95,000 52,000 13,000 21,000 $9,000 (Assume there is not an alternative use for the If the travel book line had been discontinued, corporate profits for the current year would have decreased by space rented.) A. $34,000 B. $3,000 C. $10,000 D. $13,000
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