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Scotts sells both standard and premium bags of mulch. Assume the contribution income statements for both segments below. Standard Premium Total Sales $ 8 2

Scotts sells both standard and premium bags of mulch. Assume the contribution income statements for both segments below.
Standard Premium Total
Sales $825,000 $125,000 $950,000
Less variable costs 515,00085,000600,000
Contribution margin 310,00040,000350,000
Less fixed cost 145,00065,000210,000
Net income (loss) $165,000 $(25,000) $140,000
Management is considering discontinuing the premium segment due to the segment's net loss of $-25,000. Of the total fixed costs for the premium segment, $15,000 would not be incurred (a cost saving) if the premium segment is dropped. Management expects no changes in sales of the standard segment if the premium segment is discontinued.
If the premium segment is discontinued, what will be the net effect on profit of the company?
Note: Do not use a negative sign.
Profits would Answer 1 by $Answer 2.

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