Dropping or adding customers or division The management accountant for Giada's Book Store has prepared the following income statement for the most current year: Cookbook Travel Book Classics Total Sales $60,000 $100,000 $40,000 $200,000 Cost of goods sold 36,000 65,000 20,000 121.000 Gross margin 24,000 35,000 20,000 79,000 Order and delivery processing 18,000 21,000 8,000 47,000 Rent (per sq. foot used) 2,000 1,000 3,000 6,000 Allocated corporate costs Corporate profit 7,000 $2.0001 7,000 $6.000 7,000 21,000 5.000 $2.000 1) 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 2) 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