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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
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 $270 $1,735 $185 45 Less: Variable expenses 1,115 216 1,376 Contribution margin $165 $140 $54 $359 Less direct fixed expenses: Depreciation 15 14 79 50 95 Salaries 120 300 $20 Segment margin tao $40 $(80) $-20 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 ca 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" "15". Should Petoskey keep or drop Conway
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