Question
Exercise 23-8 (Algo) Segment elimination LO P4 Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below).
Exercise 23-8 (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 $310,000 of its fixed costs are avoidable.
| Segment Income (Loss) | |
|---|---|
| Sales | $ 1,019,200 |
| Variable costs | 728,000 |
| Contribution margin | 291,200 |
| Fixed costs | 352,000 |
| Income (loss) | $ (60,800) |
(a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated?
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Quality Audits Are Fun Journal Notes Checklists Questions Observations Evidence Log
Authors: Just Visualize It, The Quality Guy
1st Edition
1726628981, 978-1726628983
