Quiz: Quiz 4 (Chapter 12)

Quiz: Quiz 4 (Chapter 12) Question 7 of 10 This quiz 10 This question The management accountant for Giada's Book Store has prepared the following income statement for the most current year: Cookbook Travel Book Sales Cost of goods sold Contribution margin Order and delivery processing Rent (per sq. foot used) Allocated corporate costs Corporate profit $60,000 40,000 20,000 21,000 5,000 8,000 $100,000 67,000 33,000 22,000 1,000 8,000 $2,000 Classics $60,000 22,000 38,000 10.000 5,000 8,000 $15,000 Total $220,000 129,000 91,000 53,000 11,000 24,000 $3,000 If the travel book line had been discontinued, corporate profits for the current year would have decreased by $11,000 $33,000 $10,000 $2,000 . (Assume there is not an altemative use for the space rented.)