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Question 18 (7 points) The management accountant for the Martino Organics has prepared the following segmented income statement for the most current year. Produce Fish

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Question 18 (7 points) The management accountant for the Martino Organics has prepared the following segmented income statement for the most current year. Produce Fish & Meat Sundries Total $80,000 $120,000 $60,000 $260,000 20,000 121,000 139,000 8,00047000 92,000 Sales 36,000 Variable expenses Contribution margin Other costs 65,000 44,000 55,000 40,000 21,000 18,000 32,000 Segment margin 26,000 34,000 Allocated avoidable costs 8,000 2,000 3,000 3,000 84,000 Segment income 24,000 31,000 29,000 Allocated corporate costs 000-2.000 Z000 000 21,000 $17,000 $24,000 $22,000 $63,000 Corporate profit Assume that the Sundries department has been discontinued and long-term capacity of the company has had time to adjust. The projected long-term effect of this action on annual corporate profits would be a decrease of: $40,000 $32,000 $29,000 $22,000

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