Woodruff Ltd. sells three rockers (Unfinished, Stained, and Painted) that use common facilities. The relevant data concerning these three products follow.

Required
If $15,000 of the fixed costs allocated to the Painted rockers are avoidable and the company drops Painted rockers from its product line, what will be the impact onincome?

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Sales Variable costs Contribution margin Fixed costs Operating loss Unfinished $10,000 5,000 5,000 5,000 Stained $30,000 20,000 $10,000 15,000 $ (5,000) Painted S 40,000 25,000 S 15,000 30,000 $(15,000) Total $ 80,000 50,000 $30,000 50,000 $(20,000)