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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,
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 $315,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,038,800 742,000 296,800 358,000 $ (61,200) (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. Segment Elimination Analysis Continue Eliminate Income Increase (Decrease) Income (loss) < Required A Required B >
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