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The management accountant for the Martino Organics has prepared the following segmented income statement for the most current year. Produce Fish & Meat Sundries Total

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The management accountant for the Martino Organics has prepared the following segmented income statement for the most current year. Produce Fish & Meat Sundries Total Sales $80,000 $120,000 $60,000 $220,000 Variable expenses 36,000 65,000 20,000 121,000 Contribution margin 44,000 55,000 40,000 99,000 Other costs 18,000 21,000 8,000 47,000 Segment margin 26,000 34,000 32,000 52,000 Allocated avoidable costs 2,000 3,000 3,000 8,000 Segment income 24,000 31,000 29,000 44,000 Allocated corporate costs 7,000 7,000 7,000 21,000 Corporate profit $17,000 $ 24,000 $ 22,000 $23,000Assume that the Sundries department has been discontinued and long-term capacity of the company has had time to adjust. The projected long-term effect of this action on annual corporate profits would be a decrease of: Select one: O a. $40,000 b. $32,000. c. $29,000 O d. $22,000

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