Keep$-$or$-$Drop Decision

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

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:

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 $"15".$

$$$

Should Petoskey keep or drop Walloon?