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Diva Footwear is contemplating if it should continue producing platform shoes. The following information is available for the companys segments. Platform Shoes Athletic Shoes Boots

Diva Footwear is contemplating if it should continue producing platform shoes. The following information is available for the companys segments.

Platform Shoes Athletic Shoes Boots

Sales $120,000 $420,000 $360,000

Variable costs 64,000 220,000 140,000

Contribution margin 56,000 200,000 220,000

Direct fixed costs 45,000 70,000 90,000

Allocated fixed costs 20,000 70,000 60,000

Net income ($ 9,000) $ 60,000 $ 70,000

If platform shoes are dropped, what effect will occur to Diva Footwears net income?

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