1. Keep-or-Drop Decision

   Petoskey Company produces three products: Alanson, Boyne, and Conway. A segmented income statement, with amounts given in thousands, follows:

   		Alanson		Boyne		Conway		Total
   Sales revenue		$1,280		$185		$435		$1,900
   Less: Variable expenses		1,115		45		348		1,508
   Contribution margin		$165		$140		$87		$392
   Less direct fixed expenses:
   	Depreciation	50		15		14		79
   	Salaries	95		85		108		288
   Segment margin		$20		$40		$(35)		$25

   Direct fixed expenses consist of depreciation and plant supervisory salaries. 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 supervisor whose position would be eliminated if the associated product were dropped.

   Required:

   Conceptual Connection: Estimate the impact on profit that would result from dropping Conway. Enter amount in full, rather than in thousands. For example, "15000" rather than "15". Increase or decrease by $

   Should Petoskey keep or drop Conway?