Answer the following questions using the information below:
The management accountant for Giada's Book Store has prepared the following income statement for the most current year:

\begin{array}{lrrrr}&\text { Cookbook }&\text { Travel Book }&\text { Classics }&\text { Total }\\\text { Sales } & \$ 60,000 & \$ 100,000 & \$ 40,000 & \$ 200,000 \\\text { Cost of goods sold } & 36,000 & 65,000 & 20,000 & 121,000 \\\text { Contribution margin } & 24,000 & 35,000 & 20,000 & 79,000 \\\text { Order and delivery processing } & 18,000 & 21,000 & 8,000 & 47,000\\\text { Rent (per sq. foot used) } & 2,000 & 1,000 & 3,000 & 6,000 \\\text { Allocated corporate costs } & 7,000 & 7,000 & 7,000 & 21,000 \\\text { Corporate profit } & \$(3,000) & \$ 6,000 & \$ 2,000 & \$ 5,000\end{array}

-If the cookbook product line had been discontinued 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

When There Is Excess Capacity, It Makes Sense to Accept

Multiple Choice

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