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 $"15".$