Exercise 23-13 Income analysis of eliminating Departments LO A1 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. (Leave no cells blank. Enter zeros where appropriate.) MARINETTE COMPANY Income Statement-Canoe Segment Sales $3,400,000 Variable costs $ 730,000 ials Direct labor 780,000 Variable overhead 580,000 340,000 Variable selling and administrative Total variable costs Contribution margin 2,430, 000 970,000 ixed costs Direct 655,000 Indirect 580,000 Total fixed costs 1,235,000 $(265,000) Net income 1 canoes are discontinued, calculate the net income lost or gained. Keep the department Eliminate the department Sales Expenses: Total expenses Net income (loss) 2. Should management discontinue the manufacturing of canoes? Yes O No