Answer the Following Questions Using the Information Below:
the Management

question 212

Multiple Choice

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

---

Definitions:

African Slave Trade

The forced transportation and enslavement of African people primarily to the Americas from the 16th to the 19th centuries, a foundational element of global economic and social systems of inequality.

Bacon's Rebellion

A 1676 armed rebellion in the Virginia Colony, led by Nathaniel Bacon against the colonial government, reflecting early tensions between European settlers and Indigenous populations, and economic discontent.

Abolition of Slavery

The legal or formal ending of the practice of enslaving people, where individuals are owned and controlled by others.

Homogenization

The process of making things uniform or similar by blending diverse elements, often leading to a loss of cultural diversity.