The corporate costs won´t disappear. Therefore dropping Cook Book will not influence the total amount corporate costs to be allocated.
The Operating profit of Cook Book ignoring the allocated corporate costs is:
$ 4,000 ($(3,000) + $ 7,000). That portion ($ 4,000) of contribution to Operating profit will be missed dropping Cook Book.
Sent from Mail for Windows 10
Institute of Management Accountants
10 Paragon Drive, Suite 1
Montvale, New Jersey 07645-1760 USA
(800) 638-4427 or +1 (201) 573-9000
CMA Certification CSCA Credential Membership Education Center Career Resources Research & Publications Events