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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 $60,000

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 $60,000 $100,000 $60,000 $220,000
Cost of goods sold 40,000 67,000 22,000 129,000
Contribution margin 20,000 33,000 38,000 91,000
Order and delivery processing 21,000 22,000 10,000 53,000
Rent (per sq. foot used) 5000 1000 5000 11,000
Allocated corporate costs 8000 8000 8000 24,000
Corporate profit $(14,000) $2000 $15,000 $3000

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.)

Question 36 options:

$11,000

$10,000

$33,000

$2000

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