Question 14 & 15: The cost accountant for Mariam's International Book Center has presented the below income statement for the period: Close book Open Book Classics Total $40,000 $200,000 121,000 79,000 Sales Cost of goods sold Contribution margin Order and delivery processing Rent (per sq. foot used) Allocated corporate costs Corporate profit $60,000 100,000 65,000 20,000 47000 35,000 21,000 8,000 1,000 7,000 36,000 24,000 18,000 2,000 7,000 20,000 6,000 3,000 7,000 21,000 $ (3,000) $6,000 2,000 $ 5,000 14. If the Close book is discontinued, the company will report A) greater corporate profits B) less corporate profits the same amount of corporate profits resulting profits cannot be determined C) D) 15. If the Open book is discontinued, profi ts for the year will decreased by: A) $35,000 B) $13,000 C. $14,000 D. $6,000 Consider the following Level of Activity Total Cost Units of Activity Highest $28,000 22,000 $6,000 15,000 10,000 5.000 st Difference 16. From the table above, use high & low method to determine the total fixed and variable cost per unit. RFJ is planning the replacement of a machine that is currently used in the manufacturing of staple pin. The following information is provided: Old Machine $45,000 10 New Machine $35,000 Original Cost Useful Life Current age Book value Present Disposal Value Future Disposal Value Annual operating cost 25,000 8.000 7,000 4,000