Question

	cook book	travel books	classics
Sales	$67,000	$134,000	$53,000	$254,000
Cost of goods sold	37,000	65,000	23,000	125,000
Contribution margin	30,000	69,000	30,000	129,000
Order and delivery processing	21,000	21,000	11,000	53,000
Rent​ (per sq. foot​ used)	3,000	4,000	4,000	11,000
Allocated corporate costs	12,000	12,000	12,000	36,000
Corporate profit	​$ ​ (6,000​)	$32,000	$3,000	$29,000

If the cookbook product line had been discontinued prior to this​ year, the company would have reported​ ________.

THE TOP RIGHT ROW IS LABLED TOTAL .

A.the same amount of corporate profits

B.greater corporate profits

C.less corporate profits

D. resulting profits cannot be determined

Answer 1

If the cookbook product line had been discontinued prior to this​ year, the company would have reported

c) less corporate profits

Reason : As the product line has been discontinued it is necesssary/mandatory requirement to show the profits/losses from the discontinued operations for the presentation purpose and also to make aware the users of accounting with correct facts and figures.

Since the cookbook product line shows corporate loss it will show the less corporate profits.