Keep-or-Drop Decision Charlevoix Company produces three products: Torch, Elk, and Walloon. A segmented income statement follows:...

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Keep-or-Drop Decision Charlevoix Company produces three products: Torch, Elk, and Walloon. A segmented income statement follows: Torch Elk Walloon (Shown in 000's) Total Sales revenue $1,280 $185 $270 $1,735 Less: Variable expenses 1,115 45 203 1,363 $165 $140 $67 $372 Contribution margin Less direct fixed expenses: Depreciation Advertising Segment margin 50 15 15 80 95 85 108 288 $20 $40 $(56) $4 Direct fixed expenses consist of depreciation and advertising. All depreciation on the equipment is dedicated to the product lines. None of the equipment can be sold. Assume that each of the three products has a different marketing campaign whose advertising would remain if the associated product were dropped. Required: 1. Conceptual Connection: Estimate the impact on profit that would result from dropping Wallon. Enter amount in full, rather than in thousands. For example, "15000" rather than "15". Keep-or-Drop Decision Charlevoix Company produces three products: Torch, Elk, and Walloon. A segmented income statement follows: Torch Elk Walloon (Shown in 000's) Total Sales revenue $1,280 $185 $270 $1,735 Less: Variable expenses 1,115 45 203 1,363 $165 $140 $67 $372 Contribution margin Less direct fixed expenses: Depreciation Advertising Segment margin 50 15 15 80 95 85 108 288 $20 $40 $(56) $4 Direct fixed expenses consist of depreciation and advertising. All depreciation on the equipment is dedicated to the product lines. None of the equipment can be sold. Assume that each of the three products has a different marketing campaign whose advertising would remain if the associated product were dropped. Required: 1. Conceptual Connection: Estimate the impact on profit that would result from dropping Wallon. Enter amount in full, rather than in thousands. For example, "15000" rather than "15".

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