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The junior accountant for the Bridgerton Bee Company has prepared the following income statement for the most current year: Honey Syrup Other Sales $50,000 $15,000
The junior accountant for the Bridgerton Bee Company has prepared the following income statement for the most current year: Honey Syrup Other Sales $50,000 $15,000 $40,000 Cost of goods sold (variable) 24,000 8,000 19,000 Contribution margin $26,000 $7,000 $21,000 Delivery and ordering costs* 1,000 500 800 Rent (per sq. metre used**) 5,000 3,000 4,000 Allocated corporate costs 5,000 5,000 5,000 Operating income $15,000 $(1,500 $11.200 * Delivery and ordering costs are traceable to the product line. ** The company pays for the entire space and allocates based on sq. metres used. Total $105,000 51,000 $54,000 2,300 12,000 15,000 $24,700 b) If the Other product line had been discontinued, operating income for the current year would have increased or decreased and by what amount
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