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You are the accountant for West Coffee Shop bookstore and you have prepared the income statement presented below for last year. If you were to

You are the accountant for West Coffee Shop bookstore and you have prepared the income statement presented below for last year. If you were to advise management to drop the bakery line, what would be your new total corporate profit?

Bakery Coffee Accessories
Sales $ 45,000 $ 200,000 $ 40,000
Cost of goods sold $ 37,000 $ 45,000 $ 13,000
Contribution margin $ 8,000 $ 155,000 # $ 27,000
Rent (allocated per sq. foot used) $ 3,000 $ 3,000 $ 3,000
Allocated corporate costs $ 10,000 $ 10,000 $ 10,000
Corporate profit $ (5,000) $ 142,000 # $ 14,000/

Group of answer choices

$138,000

$151,000

$156,000

$143,000

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