The management accountant for Adele's Book Store has prepared the following income statement for the most current year:

CookbookTravel BookClassicsTotalSales$60,000$100,000$40,000$200,000Cost of goods sold36,00065,00020,000121,000Contribution margin24,00035,00020,00079,000Order and delivery processing18,00023,0008,00049,000Rent (per sq. foot used)2,0001,0003,0006,000Allocated corporate costs7,0009,0007,00023,000Corporate profit$ (3,000)$ 2,000$ 2,000$ 1,000

Assuming the space can be given back to the landlord, if the travel book line had been discontinued, corporate profits for the current year would have decreased by:

Group of answer choices

$35,000

$2,000

$11,000

$12,000

Monaghan Publishing has decided to produce a new accounting textbook. It is estimated that the new book can be sold at a target price of $300. The annual target sales volume for these accounting books is 30,000. If target operating income of 20% of sales, what is the target total cost?

Group of answer choices

$10,800,000

$9,000,000

$1,800,000

$7,200,000