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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

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 $307,500 of its fixed costs are avoidable.

Segment Income (Loss)
Sales $ 1,009,400
Variable costs 721,000
Contribution margin 288,400
Fixed costs 349,000
Income (loss) $ (60,600)

(a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated?

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