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Anthropologie, owned by URBN, sells both standard and custom size furniture items. Assume that the contribution income statements for both segments follow. Standard Custom Total

 Anthropologie, owned by URBN, sells both standard and custom size furniture items. Assume that the contribution income statements for both segments follow.

Standard Custom Total
Sales $2,000,000 $100,000 $2,100,000
Less variable costs 1,200,000 80,000 1,280,000
Contribution margin 800,000 20,000 820,000
Less fixed costs 600,000 35,000 635,000
Net income (loss) $200,000 $(15,000) $185,000

Management is considering discontinuing the Custom segment due to the segment's net loss of $15,000. Of the total fixed costs for the Custom segment, $10,000 would not be incurred (a cost saving) if the Custom segment is dropped. Management expects no changes to the sales of the Standard segment if the Custom segment is discontinued If the Custom segment is discontinued, what will be the net effect on the profit of the company? Note: enter all numbers as positive numbers, do NOT use a negative sign. Profits would Answer increase decrease by $Answer.

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