Marinette Company makes several products, including canoes. The company has been experiencing losses from its canoe segment
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MARINETTE COMPANY $2,000,000 Variable costs Direct materials Direct labor. Variable overhead Variable selling and administrative . . . **. $450,000 500,000 300,000 200,000 . Total variable costs Contribution margin_.... Fixed costs 1,450,000 550,000 375.000 300,000 Indirect .. - . Total fixed costs Net income. 675,000 S (125,000)
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If canoes are discontinued Revenue lost 2000000 Variable costs saved Direct ma...View the full answer
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