Exercise 23-8 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. $2,500,000 MARINETTE COMPANY Income Statement-Canoe Segrent Sales Variable costs Direct materials $ Direct labor Variable overhead Variable selling and administrative Total variable costs Contribution margin 510,000 560.000 360. 230.000 1,660, 640,000 435,00 360.000 Direct Indirect Total fixed costs Net Income 795,000 $ (155,000) 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 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 Expenses Complete this question by entering your answers in the tabs below. Required 1 Required 2 If cances are discontinued, calculate the net income lost or gained. Leave no cells blank. Enten zers where appropriate Keep The department department Sales Expense Total expenses Net Income (loss) Required 2 > 0. 1. If canoes are discontinued, calculate the net income lost or gained. 2. Should management discontinue the manufacturing of canoes? References 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? Required 1