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Paddington Company sells three products in its retail stores: teddy bears, baby dolls, and blocks. Results for the year are below: Teddy Bears Baby Dolls

Paddington Company sells three products in its retail stores: teddy bears, baby dolls, and blocks. Results for the year are below: Teddy Bears Baby Dolls Blocks Total Revenue $32,000 $43,000 $26,000 $101,000 Variable costs 27,000 28,000 16,000 71,000 Fixed costs 6,000 7,000 7,000 20,000 Net income (loss) $ (1,000) $ 8,000 $ 3,000 $ 10,000 Paddington is considering discontinuing the Teddy Bears product. Assuming 50% of the fixed costs could be eliminated with the product, by what amount would total net income increase or decrease* if the Teddy Bears were eliminated?

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