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:

TCA Imipramine

A tricyclic antidepressant used to treat major depression and enuresis (bedwetting), acting by inhibiting the reuptake of neurotransmitters.

Antidepressant

A medication or other form of treatment designed to alleviate symptoms of depression by influencing neurotransmitter levels.

Enuresis

The medical term for involuntary urination, especially by children at night, also known as bedwetting.

Anorexia Nervosa

An eating disorder characterized by an obsessive fear of gaining weight, leading to severe restriction of food intake and often excessive weight loss.