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The management accountant for the C.R. Groceries has prepared the following segmented income statement for the most current year. Produce Fish & Meat Sundries Total
The management accountant for the C.R. Groceries has prepared the following segmented income statement for the most current year.
Produce | Fish & Meat | Sundries | Total | |
Sales | $80,000 | $120,000 | $60,000 | $260,000 |
Variable Expenses | 36,000 | 65,000 | 20,000 | 121,000 |
Contribution Margin | 44,000 | 55,000 | 40,000 | 139,000 |
Other Costs | 18,000 | 21,000 | 8,000 | 47,000 |
Segment Margin | 26,000 | 34,000 | 32,000 | 92,000 |
Allocated Avoidable Costs | 2,000 | 3,000 | 3,000 | 8,000 |
Segment Income | 24,000 | 31,000 | 29,000 | 84,000 |
Allocated Corporate Costs | 7,000 | 7,000 | 7,000 | 21,000 |
Corporate Profits | $17,000 | $24,000 | $22,000 | $63,000 |
If the Fish & Meat department had been discontinued, the short-term effect on corporate profits would be a decrease of?
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