Answer the Following Questions Using the Information Below:
the Management

question 74

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 travel book line had been discontinued,corporate profits for the current year would have decreased by ________.

• A) $35,000
• B) $14,000
• C) $13,000
• D) $6,000

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Definitions:

Specific

Clearly defined or identified; distinct from others or from the general case.

External

Related to, situated on, or derived from the outside of something or someone, often considered in relation to external influences or environments.

Internal

pertains to occurring or existing within the limits or boundaries of something; often referring to processes or features within an organization or an individual.

Unstable

Lacking consistency or predictability in state, structure, or behavior, leading to unpredictability.