HOW DO I CALCULATE?

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 MARINETTE COMPANY Income Statement-Canoe Segment Sales $2,800,000 Variable costs $ 610,000 660,000 460,000 Direct materials Direct labor Variable overhead Variable selling and administrative 280,000 Total variable costs 2,010,000 790,000 Contribution margin Fixed costs Direct 535,000 460,000 Indirect Total fixed costs 995,000 $ (205,000) 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 If canoes are discontinued, calculate the net income lost or gained. (Leave no cells blank. Enter zeros where appropriate.) Eliminate the department Keep the department Sales Expenses: Total expenses Net income (loss)