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The management accountant for Giada's Book Store has prepared the following income statement for the most current year: Sales Cost of goods sold Gross profit
The management accountant for Giada's Book Store has prepared the following income statement for the most current year: Sales Cost of goods sold Gross profit Order and delivery processing Rent (per sq. foot used) Allocated corporate costs Corporate profit Cookbook $70,000 37,000 33,000 23,000 7,000 7,000 $ (4,000) Travel Book $158,000 69,000 89,000 24,000 1,000 7,000 $57,000 Classics $55,000 24,000 31,000 10,000 3,000 7,000 $11,000 Total $283,000 130,000 153,000 57,000 11,000 21,000 $64,000 If the travel book line had been discontinued, corporate profits for the current year would have decreased by (Assume there is no alternative use for the space rented.) O A. $65,000 O B. $89,000 OC. $64,000 OD. $57,000
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