The Wood Company processes two types of wood, poplar, and maple, into window blinds. Last...

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Accounting

The Wood Company processes two types of wood, poplar, and maple, into window blinds. Last years operating profits were as follows:
The illustration represents financial data related to operating profits. The table consists of three columns and five rows. The first column consists of the elements: Sales revenue, Variable expenses, Contribution margin, Fixed expenses, and Segment net income. The second column has a header of Poplar and lists the respective amount for each element listed in column one. The third column has a header of Maple and lists the respective amount for each element listed in column one. Sales revenue for Poplar is $100,000 and for Maple is $150,000. Variable expenses for Poplar is 70,000 and for Maple is 90,000 and each amount is underlined to denote a sum total. Contribution margin for Poplar is Sales revenue minus Variable expenses, or 30,000, and for Maple is 60,000. Fixed expenses for Poplar is 35,000 and for Maple is 45,000 and each amount is underlined to denote a sum total. Segment net income for Poplar is Contribution margin minus Fixed expenses, or $(5,000) and for Maple is $15,000. The amounts for Segment net income are underlined twice to denote the end of the calculation.
If the Poplar line is dropped due to lack of profitability, 20% of its fixed expenses could be eliminated. What would the operating income of Wood Company have been last year if the Poplar line had been dropped before the year began?
Select answer from the options below
$15,000
($13,000)
$13,000
($20,000)

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