Answer the Following Questions Using the Information Below:
the Management

question 94

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 football boots line had been discontinued,corporate profits for the current year would have decreased by:

• A)$6000
• B)$14 000
• C)$13 000
• D)$35 000

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Definitions:

Propanal

An organic compound with the formula CH3CH2CHO, a type of aldehyde that is used as an intermediate in organic synthesis.

Butanal

An aldehyde with the formula C4H8O, it is a four-carbon chain compound with a carbonyl group attached to the first carbon.

NaOH

Sodium hydroxide, a caustic alkali commonly used in many industrial and laboratory processes, known for its strong base characteristics.

Benzophenone

An aromatic ketone with the formula C13H10O, used as a photo initiator in polymer chemistry and as a flavoring agent.