Exercise 10-8 Income analysis of eliminating departments LO P4 Marinette Company makes several products, including canoes. The company has been experiencing losses from its canoe segment and is considering dropping that product line. The following information is available regarding its canoe segment $2,900,000 MARINETTE COMPANY Income statement-Canon Segment Sales Variable conta Direct materials $ 630,000 680,000 Variable overhead 480.000 290,000 Total variable costs Contribution margin Pixed cost Direet 555,000 Indirect 400,000 Total fixed conta Direct labor Variable selling and administrative 2.000.000 120.000 1,035,000 #215,000) Net Income 1. It canoes are discontinued, calculate the net income lost or gained, 2. Should management discontinue the manufacturing of cances? Complete this question by entering your answers in the tabs below. Required 1 Required 2 If canoes are discontinued, calculate the net income lost or gained. (Leave no cells blank, Enter zeros where appropriate.) Keep the Eliminate the . 1. If canoes are discontinued, calculate the net income lost or gained. 2. Should management discontinue the manufacturing of canoes? Complete this question by entering your answers in the tabs below. Required 1 Required 2 If canoes are discontinued, calculate the net income lost or gained. (Leave no cells blank. Enter zeros where appropriate.) Keep the department Eliminate the department Sales Expenses Total expenses Net income (los) Required 2 > 290,000 2,080,000 820,000 Variable selling and administrative Total variable costs Contribution margin Fixed costs Direct Indirect Total fixed costs 555,000 480,000 1,035,000 $ (215,000) Net income 1. If canoes are discontinued, calculate the net income lost or gained. 2. Should management discontinue the manufacturing of canoes? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Should management discontinue the manufacturing of canoes? Should management discontinue the manufacturing of canoes?