Multiple Cholce Questlon

SPS Products has two divisions$-$Catalog Sales and Online Sales. For the last quarter the Catalog Sales segment margin was $($ $$5,000).$ Online sales were

$$100,000.$ Online Sales contribution margin was $$60,000,$ and its segment margin was $$40,000.$ If Catalog Sales are discontinued, it is estimated that online sales

will increase by $10\%.$ Discontinuing Catalog Sales should increase company profits by

$$9,000$

$$11,000$

$$5,000$

$$6,000$

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