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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 Total Boyne $185
Keep-or-Drop Decision Petoskey Company produces three products: Alanson, Boyne, and Conway. A segmented income statement, with amounts given in thousands, follows Alanson Total Boyne $185 45 $140 Conway $1,280 1,115 $165 $285 $1,750 1,331 $419 Sales revenue Less: Variable expenses Contribution margin Less direct fixed expenses $114 50 15 85 $40 10 116 S(12) 75 296 $48 Depreciation Salaries 95 $20 Segment margin 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 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 on profit that would result from dropping Conway. Enter amount in full, rather than in thousands. For example,' "15" 27,000| X Should Petoskey keep or drop Conway? Keep
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