Question
The management accountant for Robbie's Sports Shoe Store has prepared the following income statement for the most current year: Rugby boots Football boots Golf shoes
The management accountant for Robbie's Sports Shoe Store has prepared the following income statement for the most current year:
Rugby bootsFootball bootsGolf shoesTotal
Sales$60000$100000$40 000$200 000
Cost of goodssold36 00065 00020 000121 000
Contributionmargin240003500020 00079 000
Order and delivery processing1800021000800047 000
Rent (per sq. metreused)2000100030006000
Allocated corporatecosts70007000700021 000
Corporateprofit$(3000)$6000$2000$5000
If the football boots line had been discontinued, corporate profits for the current year would have decreased by:
A.$6000
B.$35 000
C.$13 000
D.$14 000
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