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Company A is considering dropping product line 1. Product line 1 has normal monthly revenues and expenses of Revenues $60,000 Variable Production Costs $30,000 Variable

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Company A is considering dropping product line 1. Product line 1 has normal monthly revenues and expenses of Revenues $60,000 Variable Production Costs $30,000 Variable Selling Costs $10,000 Contribution Margin $20,000 Fixed Production Costs $15,000 Fixed Selling Costs $10,000 Operating Income (5,000) Dropping Product Line 1 is not expected to impact the sales of other products. If they drop Product line 1, then Company A expects to save 1/3 their Fixed Production Costs and 1/2 of their Fixed Selling Costs. How much is the income impact of dropping Product Line 1

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