Asynchronous Activity PB10. Cable paper company produces many colors of paper. The current popular color is grey. To increase the production of grey paper, a decision must be made to determine what color must be dropped. The following information is available to make the decision. Peach $40,000 20,000 20,000 8,000 Sales Variable cost Contribution margin Direct fixed cost Allocated common fixed cost Net income Corrected Blue $60,000 30,000 30,000 12,000 6,000 $12,000 Plum $80,000 40,000 40,000 16,000 8,000 $16,000 4,000 $ 8,000 What is the total income if all colors were produced? If Peach was dropped, what would be the effect on Net Income? How much did Peach paper contribute to Fixed Costs? Determine the cost and the amount that will remain even if Peach is dropped? Which costs and amount will be eliminated if Peach is dropped