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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

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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 45 326 1,486 Contribution margin $165 $140 $109 $414 Less direct fixed expenses Depreciation 50 15 10 75 Salaries 95 85 116 296 $20 $43 Segment margin $40 $(17) Direct fixed expenses consist of depreciation and plant supervisory stories. 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 remain of 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 Shut Dan Van Arron Chwa Sales revenue $1,280 $185 $435 $1,900 Less: Variable expenses 1,115 45 326 1,486 Contribution margin $165 $140 $109 $414 Less direct fixed expenses: Depreciation 50 15 10 75 Salaries 95 85 116 296 $20 $40 $43 Segment margin $(17) Direct fixed expenses consist of depreciation and plant supervisory salaries. All depreciation on the equipment is dedicated to the product lines. None of the can be sold. Assume that each of the three products has a different supervisor whose position would remain if the associated product were dropped Required: CONCEPTUAL CONNECTION: Estimate the impact or profit that would result from dropping Conway. Enter amount in full, rather than in thousands. For rather than "15" Should Petoskey keep or drop Conway? Sales revenue $1,280 $185 $390 $1,855 Lesst Variable expenses 1,115 45 312 1,472 Contribution margin $165 $140 $78 $383 Less direct foed expenses: Depreciation 50 15 14 79 Salaries 95 85 104 284 $20 $40 $20 Segment margin $(40) Direct fixed expenses consist of depreciation and plant supervisory salaries. Al depreciation on the equipment is dedicated to the product lines. None of the equipme 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 Should Petoskey keep or drop Conway

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