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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 $305,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 999,600 714,000 285,600 346,000 $ (60,400) (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. Required A Required B Compute the income increase or decrease from eliminating this segment. Income Increase (Decrease) Segment Elimination Analysis Continue Eliminate Sales $ 999,600 Variable costs 714,000 Contribution margin 285,600 0 Fixed costs 346,000 Income (loss) $ (60,400) $ 0 $
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