Question
The management accountant for Martha'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 Martha's Book Store has prepared the following income statement for the most current year:
| Cookbook | Travel Book | Classics | Total |
| Sales | $60,000 | $100,000 | $40,000 | $200,000 |
| Cost of goods sold | 36,000 | 65,000 | 20,000 | 121,000 |
| Contribution margin | 24,000 | 35,000 | 20,000 | 79,000 |
| Order and delivery processing | 18,000 | 23,000 | 8,000 | 49,000 |
| Rent (per sq. foot used) | 2,000 | 1,000 | 3,000 | 6,000 |
| Allocated corporate costs | 7,000 | 9,000 | 7,000 | 23,000 |
| Corporate profit | $ (3,000) | $ 2,000 | $ 2,000 | $ 1,000 |
Assuming the space can be given back to the landlord, if the travel book line had been discontinued, corporate profits for the current year would have decreased by:
Group of answer choices
$11,000
$12,000
$2,000
$35,000
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Employee Relations Audits
Authors: C. Jennings, W. E. J. McCarthy, R. Undy
1st Edition
0415786614, 978-0415786614
