A company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All its variable costs are avoidable, and $600,000 of its fixed costs are avoidable.

Segment Income (Loss)
Sales	$ 1,960,000
Variable costs	1,400,000
Contribution margin	560,000
Fixed costs	680,000
Income (loss)	$ (120,000)

Required: (1) Compute the income increase or decrease from eliminating this segment. (2) Should management eliminate the canoe segment?