Answer the Following Questions Using the Information Below:
the Management

question 100

Multiple Choice

Answer the following questions using the information below:
The management accountant for Robbie's Sports Shoe Store has prepared the following income statement for the most current year:
$$\begin{array} { l r r r r r } & \text { Rugby boots } & \text { Football boots } & \text { Golf shoes } & \text { Total } \\\text { Sales } & \$ 60000 & \$ 100000 & \$ 40000 & \$ 200000 \\\text { Cost of goods sold } & \underline { 36000 } & \underline { 65000 } & \underline { 20000 } & \underline { 121000 } \\\text { Contribution margin } & 24000 & 35000 & 20000 & 79000 \\\text { Order and delivery processing } & 18000 & 21000 & 8000 & 47000 \\\text { Rent (per sq. metre used) } & 2000 & 1000 & 3000 & 6000 \\\text { Allocated corporate costs } & \underline { 7000 } & \underline { 7000 } & \underline { 7000 } & \underline { 21000 } \\\text { Corporate profit } & \underline { \$ ( 3000 ) } & \underline { \$ 6000 } & \underline { \$ 2000 } & \underline { \$ 5000 }\end{array}$$
-If the rugby boots product line had been discontinued prior to this year,the company would have reported:

• A)the same amount of corporate profits.
• B)greater corporate profits.
• C)less corporate profits.
• D)resulting profits cannot be determined.

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Definitions:

National Arbitration Forum

An organization that provided arbitration and mediation services for disputes, primarily involving consumer and commercial issues.

Alternative Dispute Resolution Act

Legislation that provides for the settlement of disputes through mechanisms other than litigation, such as arbitration or mediation.

Federal District Court

A general trial court of the United States federal court system that deals with both civil and criminal cases.

Age Discrimination in Employment Act

A U.S. federal law that prohibits employment discrimination against persons 40 years of age or older.