Frogs, Inc. is considering dropping the small frog statue (this is completely unrelated to the Frogs, Inc. assignments from class so please do not research that information). If it is discontinued, $25,000 of the fixed costs can be avoided. The following information was given to you by the accounting department:

	Small Frogs	Medium Frogs	Large Frogs
Sales	75,000	125,000	175,000
Variable costs	45,000	75,000	125,000
Contribution Margin	30,000	50,000	50,000
Fixed Costs	25,000	25,000	25,000
Net Income	5,000	25,000	25,000

Should Frogs, Inc. keep or drop the Small Frog statue?

		Drop
		Keep