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 42,000 70,000 90,000

Allocated fixed costs 20,000 70,000 60,000

Net income ($ 6,000) $ 60,000 $ 70,000

If platform shoes are dropped, what effect will occur to Diva Footwears net income?

		Increase by $9,000
		Decrease by $14,000
		Decrease by $11,000
		Increase by $56,000
		Increase by $14,000