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Charlevoix Company produces three products: Torch, Elk, and Walloon. A segmented income statement, with amounts given in thousands, follows:

Line Item Description	Torch	Elk	Walloon	Total
Sales revenue	$1,280	$185	$330	$1,795
Less: Variable expenses	1,115	45	264	1,424
Contribution margin	$165	$140	$66	$371
Less direct fixed expenses:
Depreciation	50	15	9	74
Advertising	95	85	92	272
Segment margin	$20	$40	$(35)	$25

Direct fixed expenses consist of depreciation and advertising. 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 marketing campaign whose advertising would be eliminated if the associated product were dropped.

Assume that 30% of the Torch customers choose to buy from Charlevoix because it offers a full range of products, including Walloon. If Walloon were no longer available from Charlevoix, these customers would go elsewhere to purchase Torch.

QUESTION: Estimate the impact on profit that would result from dropping Wallon. Enter amount in full, rather than in thousands. For example, "15000" rather than "15".

Thanks!

Keep-or-Drop Decision Charlevoix Company produces three products: Torch, Elk, and Walloon. A segmented income statement, with amounts given in thousands, follows: Direct fixed expenses consist of depreciation and advertising. 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 marketing campaign whose advertising would be eliminated if the associated product were dropped. would go elsewhere to purchase Torch. Required: x 2. Conceptual Connection: Should Charlevoix keep or drop Walloon? [Refer to Exhibit 2-2] This use of historical customer behavior data represents an example of a data analytic