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The management accountant for Giada's Book Store has prepared the following income statement for the most current year: If the travel book line had been
The management accountant for Giada's Book Store has prepared the following income statement for the most current year:
If the travel book line had been discontinued, corporate profits for the current year would have decreased by ________. (Assume there is not an alternative use for the space rented.)
Sales Cost of goods sold Contribution margin Order and delivery processing Rent (per sq. foot used) Allocated corporate costs Corporate profit Cookbook $63,000 38,000 25,000 18,000 7,000 7,000 $(7,000) Travel Book $138,000 67,000 71,000 25,000 4,000 7,000 $35,000 Classics $49,000 21,000 28,000 9,000 4,000 7,000 $8,000 Total $250,000 126,000 124,000 52,000 15,000 21,000 $36,000Step by Step Solution
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