Morgan Ltd. sells paint and paint supplies, carpet and wallpaper. In recent years there has been a significant decline in wallpaper sales, and management is now looking at discontinuing that product line. A recent income summary is presented here: Paint and Supplies Carpeting Wallpaper Contribution margin $76,000 $69,000 $14,000 Fixed costs 28,000 37,500 22,500 Operating Income (Loss) $48,000 $31,500 $(8,500) If Morgan decides to drop the wallpaper product line then that space will be remodeled at a cost of $6,000 and carpet sales will expand into that area. As a result the contribution margin for carpeting is expected to increase by $10,500 annually. As well, the wallpaper's fixed costs will be reduced by 45%, with the balance allocated to the remaining product lines. Sales of paint and paint supplies is expected to decrease by 8%. Morgan will spend an additional $6,500 in advertising to promote the expanded carpet line. Given this information, what is the financial benefit (cost) of dropping the wallpaper line?