10-2

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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 $305,000 of its fixed costs are avoidable. (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated? Complete this question by entering your answers in the tabs below. Compute the income increase or decrease from eliminating this segment. Cobe Company has manufactured 235 partially finished cabinets at a cost of $58,750. These can be sold as is for $70,500. Instead, the cabinets can be stained and fitted with hardware to make finished cabinets. Further processing costs would be $14,100, and the finished cabinets could be sold for $94,000. (a) Prepare a sell as is or process further analysis of income effects. (b) Should the cabinets be sold as is or processed further and then sold