Question
The management accountant for the Martino Organics has prepared the following segmented income statement for the most current year. Produce Fish & Meat Sundries Total
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 | $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 profit | $17,000 | $ 24,000 | $ 22,000 | $ 63,000 |
If the Produce department had been eliminated prior to this year, the company would have reported:
| A. | greater corporate profits. | |
| B. | the same amount of corporate profits. | |
| C. | less corporate profits. | |
| D. | resulting profits cannot be determined. |
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