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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 Contribution margin
The management accountant for Giada's Book Store has prepared the following income statement for the most current year: Sales Cost of goods sold Contribution margin Order and delivery processing Rent (per sq. foot used) Allocated corporate costs Corporate profit Cookbook $65,000 38,000 27,000 20,000 4,000 8,000 $ (5,000) Travel Book $120,000 70,000 50,000 23,000 5,000 8,000 $14,000 Classics $52,000 24,000 28,000 13,000 5,000 8,000 $2,000 Total $237,000 132,000 105,000 56,000 14,000 24,000 $11,000 If the cookbook product line had been discontinued prior to this year, the company would have reported O A. the same amount of corporate profits O B. less corporate profits O C. greater corporate profits OD. resulting profits cannot be determined
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