Diva Footwear is contemplating if it should continue producing platform shoes. The following information is available for the companys segments.

		Platform Shoes		Athletic Shoes		Boots
Sales		$120,000		$420,000		$360,000
Variable costs		64,000		220,000		140,000
Contribution margin		56,000		200,000		220,000
Direct fixed costs		45,000		70,000		90,000
Allocated fixed costs		20,000		70,000		60,000
Net income		($9,000)		$60,000		$70,000

If platform shoes are dropped, sales of athletic shoes are expected to drop by 10%. What impact will occur to Diva Footwears net income?

Income will increase by $9,000.

Income will decrease by $53,000.

Income will decrease by $31,000.

Income will decrease by $11,000.