FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The
Cookbook Travel Book Classics Total
Sales $65,000 $164,000 $55,000 $284,000
Cost of goods sold 37,000 67,000 20,000 124,000
Contribution margin 28,000 97,000 35,000 160,000
Order and delivery processing 21,000 25,000 11,000 57,000
Rent (per sq. foot used) 5,000 4,000 4,000 13,000
Allocated corporate costs 10,000 10,000 10,000 30,000
Corporate profit $ (8,000) $58,000 $10,000 $60,000
If the travel book line had been discontinued, corporate profits for the current year would have decreased by ________.
Solve by usuing using regression analysis
Expert Solution
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Step 1
Given,
Travel book = contribution = $97,000,
Order and delivery processing = $25,000,
Rent = $4,000.
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