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Author Question: The management accountant for the Chocolate S'more Company has prepared the following income ... (Read 205 times)

jrubin

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The management accountant for the Chocolate S'more Company has prepared the following income statement for the most current year: 

ChocolateOther CandyFudgeTotal
Sales$40,000$25,000$35,000$100,000
Cost of goods sold26,00015,00019,00060,000
Contribution margin14,00010,00016,00040,000
Delivery and ordering costs2,0003,0002,0007,000
Rent (per sq. foot used)3,0003,0002,0008,000
Allocated corporate costs5,0005,0005,00015,000
Corporate profit$4,000$(1,000)$7,000$10,000

a.  Do you recommend discontinuing the Other Candy product line? Why or why not?
b.  If the Chocolate product line had been discontinued, corporate profits for the current year would have decreased by what amount?


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Marked as best answer by jrubin on Mar 6, 2021

upturnedfurball

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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