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The management accountant for Giada's Book Store has prepared the following income statement for the most current year: Cookbook Travel Book Classics Total Sales
The management accountant for Giada's Book Store has prepared the following income statement for the most current year: Cookbook Travel Book Classics Total Sales Cost of goods sold $70,000 $185,000 $59,000 $314,000 40,000 69,000 20,000 129,000 Contribution margin 30,000 116,000 39,000 185,000 Order and delivery processing 19,000 23,000 8,000 50,000 Rent (per sq. foot used) Allocated corporate costs 3,000 4,000 8,000 15,000 10,000 10,000 10,000 30,000 Corporate profit $ (2,000) $79,000 $13,000 $90,000 If the cookbook product line had been discontinued prior to this year, the company would have reported A. less corporate profits B. the same amount of corporate profits C. greater corporate profits D. resulting profits cannot be determined
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