Exercise 23-8 Income analysis of eliminating departments LO P4 Marinette Company makes several products, including cances. 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. MARINETTE COMPANY Income statement-Canon Sepet Sales $3,000,000 Variable costs Direct materials $310. Direct labor 36,000 Variable overhead 600, Variable selling and administrative 380,000 Total variable costs 2,210, Contribution margin 1,090,000 Fixed costs Direct 735,00 Indirect 560.000 Total fixed costs 1.395,000 Net income $ 205,000 1. If canoes are discontinued calculate the net income lost or gained 2. Should management discontinue the manufacturing of canoes Prev 1 of 1 11 Next NO Required Required 2 It canoes are discontinued, calculate the net income lost or gained. (Leave no cells blank. Enter 200s where appropriate Keep the department Eliminate the department Sales Expenses Total expenses Tuet income oss) Prev 1 of 1 Nad 660,000 Indirect Total Fixed costs Net Income 1,395,00 5_305,000 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 Required 2 Should management discontinue the manufacturing of canoes? Should management discontinue the manufacturing of canoes?