The management accountant for the Chocolate S'more Company has prepared the following income statement for the most current year:

ChocolateOther CandyFudgeTotal

Sales$40,000$25,000$35,000$100,000

Cost of goods sold26,00015,00019,00060,000

Contribution margin14,00010,00016,00040,000

Delivery and ordering costs2,0003,0002,0007,000

Rent (per sq. foot used)3,0004,0002,0009,000

Allocated corporate costs5,0005,0005,00015,000

Corporate profit$4,000$(2,000)$7,000$9,000

a. - Do you recommend discontinuing the Other Candy product line? Why or why not?

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b. - If the Chocolate product line had been discontinued, corporate profits for the current year would have decreased by what amount?

c. - What ethical issues would you consider in closing a department or division in a company?