Exercise $10-8($Algo$)$ Segment elimination LO P$4$

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 $$317,500$ of its fixed costs are avoidable.

Segment Income $($Loss$)$

Sales $ $1,048,600$

Variable costs $749,000$

Contribution margin $299,600$

Fixed costs $361,000$

Income $($loss$)$ $ $(61,400)$

$($a$)$ Compute the income increase or decrease from eliminating this segment.

$($b$)$ Should the segment be continued or eliminated?