Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see

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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?

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Fundamental Accounting Principles

ISBN: 9781260247985

25th Edition

Authors: John J Wild, Ken Shaw

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Question Posted: Oct 28, 2021 03:06 AM

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Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see

Question:

Segment Income (Loss) Sales ... $980,000 Variable costs ... 700,000 Contribution margin..... 280,000 Fixed costs ... 340,000 Income (loss).. $ (60,000)

Step by Step Answer:

Answer A Current income loss of the segment 60000 No...View the full answer

Fundamental Accounting Principles

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