Keep-or-Drop Decision Petoskey Company produces three products: Alanson, Boyne, and Conway. A segmented income statement, with amounts given in thousands, follows: Sales revenue Alanson Boyne $1,280 $185 1,115 45 $165 $140 Conway $315 252 Total $1,780 1,412 Less: Variable expenses $368 Contribution margin Less direct fixed expenses: Depreciation Salaries 75 50 95 15 85 116 296 Segment margin $20 $40 $(63) 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 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, "15000" rather than "15". Decrease Should Petoskey keep or drop Conway? Keep Previous Next > Check My Work