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The management accountant for Martha's Book Store has prepared the following income statement for the most current year. Cookbook Travel Classics Total Sales $60,000 $100,000
The management accountant for Martha's Book Store has prepared the following income statement for the most current year. Cookbook Travel 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 $ bar(24,000) $35,000 $20,000 $79,000 Delivery processing $18,000 $21,000 $8,000 $47,000 Other Traceable Fixed Costs $2,000 $1,000 $3,000 $6,000 Allocated corporate costs $7,000 $7,000_ $7,000_ $21,000 Corporate profit $(3,000) $ widehat(6,000) $2,000 $5,000 Based on this information, A) Should the cookbook product line be eliminated? Why or why not? B) Should a new cookbook product line, with the exact revenues and costs of the current cookbook (with the exception of an additional $3,000 of fixed c
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