Keep-or-Drop Decision Charlevoix Company produces three products: Torch, Elk, and Walloon. A segmented income statement follows: Torch Elk Walloon Total (Shown in 000's) Sales revenue $1,280 $185 $285 $1,750 Less: Variable expenses 1,115 45 214 1,374 Contribution margin $165 $140 $71 $376 Less direct fixed expenses: Depreciation 50 15 12 77 Advertising 95 85 112 292 Segment margin $20 $40 $(53) $7 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 be eliminated if the associated product were dropped. Required: 1. Conceptual Connection: Estimate the impact on profit that would result from dropping Walloon. Enter amount in full, rather than in thousands. For example, "15000" rather than "15". Increase 2. Conceptual Connection: Should Charlevoix keep or drop Walloon? Drop