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 $185 $375 $1,840 1,115 45 300 1,460 $165 $140 $75 $380 Less: Variable expenses Contribution margin Less direct foed expenses Depreciation 50 15 11 76 95 85 BO 260 $20 $40 $44 Salaries Segment margin $(16) 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 whione position would be emrated if the associated product were dropped. Assume that 20% of the Alanson customers choose to buy from Petosakey, because it offers a full range of products, including Conway. If Conway were no longer available from Petoskey, these customers would go elsewhere to purchase Alanson Requiredt 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" 1,115 45 300 1,460 Vanable expenses Contribution margin Less direct foxed expenses: $165 $140 $75 $380 Depreciation 50 15 11 76 Salaries 95 85 80 260 Segment margin $20 $40 $(16) $44 Direct fixed expenses consist of depreciation and plant supervisory salaries. All depreciation on the equipment is dedicated to the product lines. None of the equipo can be sold, Assume that each of the three products has a different supervisor whose position would be eliminated if the associated product were dropped. Assume that 20% of the Alanson customers choose to buy from Petoskey because it offers a full range of products, including Conway. If Conway were no longer av from Petoskey, these customers would go elsewhere to purchase Alanson. Required: Conceptual Connection: Estimaty the impact on profit that would result from dropping Conway. Enter amount in full, rather than in thousands. For example, "15000 rather than "15" Should Petoskey keep or drop Conway? Sell at Split-Off or Process Further Bozo Inc. manufactures two products from a joint production process. The joint process costs $110,000 and yields 6,000 pounds of LTE compound and 14,000 pour HS compound. LTE can be sold at spilt-off for $55 per pound. HS can be sold at split-off for $11 per pound. A buyer of HS asked Bozo to process HS further into CS compound. 19 HS were processed further, it would cost $30,600 totum 14,000 pounds of HS into 4,000 pounds of CS. The Cs would sell for $61 per pound. Required: 1. What is the contribution to income from selling the 14,000 pounds of HS at split-off? 2. CONCEPTUAL CONNECTION: What is the contribution to income from processing the 14,000 pounds of HS into 4,000 pounds of CS? Should Bozo continue to sell the 15 at split-off or process it further into CS