Charlevoix Company produces three products: Torch, Elk, and Walloon. A segmented income statement follows:

Line Item Description	Torch	Elk	Walloon	Total
Line Item Description	(Shown in 000's)
Sales revenue	$1,280	$185	$330	$1,795
Less: Variable expenses	1,115	45	248	1,408
Contribution margin	$165	$140	$82	$387
Less direct fixed expenses:
Depreciation	50	15	13	78
Advertising	95	85	92	272
Segment margin	$20	$40	$(23)	$37

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".

IncreaseDecrease

fill in the blank 1 of 1$

2. Should Petoskey keep or drop Walloon?

KeepDrop