Use the following information to answer questions 1 and 2. ShoppingKart, Inc. is a supermarket having three operating departments. An income statement for the most recent month of operations appears below: General Meat Produce Total Sales $50,000 $40,000 $10,000 $100,000 Variable Costs 30,000 16,000 5,000 51,000 Contribution Margin 20,000 24,000 5,000 49,000 Fixed Costs Direct, avoidable (5,000) (4,000) (3,500) (12,500) Common, Allocated based on sales dollars (10,000) (8,000) (2,000) (20,000) Profit (Loss) $ 5,000 $12,000 ($ 500) $16,500 1. If ShoppingKart, Inc. were to drop the produce line and make no other changes to its operations, income for the month would be: a. $12,000 b. $15,000 c. $16,000 d. $17,000 2. The space currently being used by the produce department could be converted to a deli department. If there were done, sales of the deli are expected to be $20,000 with variable costs of $8,000 and avoidable direct fixed costs of $3,000. Assuming no effects on the general grocery and meat departments, income for the month would be: a. $23,500 b. $24,000 c. $24,500 d. some other amount