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 $300,000 of its fixed costs are avoidable. (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated? Complete this question by entering your answers in the tabs below. Should the segment be continued or eliminated? Should the segment be continued or eliminated? Required information Exercise 23-9 (Static) Segment elimination LO P4 [The following information applies to the questions displayed below.] Suresh Company reports the following segment (department) income results for the year. Exercise 23-9 (Static) Part 1 Required information Exercise 23-9 (Static) Segment elimination LO P4 [The following information applies to the questions displayed below.] Suresh Company reports the following segment (department) income results for the year. Exercise 23-9 (Static) Part 2 b. Compute the total increase in income if the departments with sales less than avoidable costs, as identified in part a, are eliminated. Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $45,000 and a remaining useful life of five years. It can be sold now for $52,000. Variable manufacturing costs are $36,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years. (a) Compute the income increase or decrease from replacing the old machine with Machine A. (b) Compute the income increase or decrease from replacing the old machine with Machine B. (c) Should Lopez keep or replace its old machine? (d) If the machine should be replaced, which new machine should Lopez purchase? Complete this question by entering your answers in the tabs below. Compute the income increase or decrease from replacing the old machine with Machine A. (Amounts to be deducted should be indicated with a minus sign.) The company receives a special offer for 15,000 units at $12 per unit. The additional sales would not affect its normal sales. Variable costs per unit would be the same for the special offer as they are for the normal units. The special offer would require incremental fixed overhead of $60,000 and incremental fixed general and administrative costs of $4,500. (a) Compute the income or loss for the special offer. (b) Should the company accept the special offer? Complete this question by entering your answers in the tabs below. Compute the income or loss for the special offer. (Round your "Per Unit" answers to 2 decimal places.)
