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

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Definitions:

Connective Tissue

A type of biological tissue with the primary function of supporting, connecting, or separating different types of tissues and organs in the body.

Transport

The movement of substances across cell membranes and throughout the body.

Exocrine

Glands that secrete their products through ducts either out of the body or into the digestive system, unlike endocrine glands, which secrete hormones directly into the blood.

Possesses Ducts

Refers to glands or organs that have tube-like structures to convey their secretions to other locations.