Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Microeconomics Theory And Applications

Authors: Edgar K. Browning, Mark A. Zupan

13th Edition

1119368928, 9781119368922

More Books

Students also viewed these Accounting questions

Question

Mortality rate

Answered: 1 week ago

Question

Armed conflicts.

Answered: 1 week ago