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

* The company pays for the entire space and allocates based on sq. metres used.
Required:
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?

Question

The management accountant for the Chocolate S'more Company has prepared the following income statement for the most current year:
  
* The company pays for the entire space and allocates based on sq. metres used.
Required:
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?

Quizplus · Accepted Answer

The Answer of The management accountant for the Chocolate S'more Company has prepared the following income statement for the most current year:
  
* The company pays for the entire space and allocates based on sq. metres used.
Required:
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?

The Management Accountant for the Chocolate S'more Company Has Prepared