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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 $340,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,136,800 812,000 324,800 388,000 $ (63,200) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated?
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