Exercise 10-8 (Algo) Segment elimination LO P4

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 $340,000 of its fixed costs are avoidable.

Segment Income (Loss)
Sales	$ 1,136,800
Variable costs	812,000
Contribution margin	324,800
Fixed costs	388,000
Income (loss)	$ (63,200)

(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