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The accountant for Village Grocery Stores Inc. has prepared the following income statement for the most current year: Village 1 Village 2 Village 3 Village
The accountant for Village Grocery Stores Inc. has prepared the following income statement for the most current year: Village 1 Village 2 Village 3 Village 4 Sales $63,000 $179,000 $60,000 $302,000 Cost of goods sold 37,000 70,000 23,000 130,000 Contribution margin 26,000 109,000 37,000 172,000 Order and delivery processing 19,000 26,000 9,000 54,000 Rent (per sq. foot used) 4,000 3,000 3,000 9,000 Allocated corporate costs 7,000 10,000 10,000 30,000 Corporate profit $ (4,000) $70,000 $15,000 $79.000 If the Village 1 store had been discontinued prior to this year, the company would have reported O a. greater corporate profits by $4.000 b. the same amount of corporate profits o less corporate profits by $3,000 Od less corporate profits by $4,000 greater corporate profits by $7,000
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