Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see
Question:
Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All its variable costs are avoidable, and $300,000 of its fixed costs are avoidable.
(a) Compute the income increase or decrease from eliminating this segment.
(b) Should the segment be eliminated?
Transcribed Image Text:
Segment Income (Loss) Sales ... $980,000 Variable costs ... 700,000 Contribution margin..... 280,000 Fixed costs ... 340,000 Income (loss).. $ (60,000)
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Answer A Current income loss of the segment 60000 No...View the full answer
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