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 $337,500 of its fixed costs are avoidable.

Segment Income (Loss)
Sales	$ 1,127,000
Variable costs	805,000
Contribution margin	322,000
Fixed costs	385,000
Income (loss)	$ (63,000)

(a) Compute the income increase or decrease from eliminating this segment.

Segment Elimination Analysis	Continue	Eliminate	Income Increase (Decrease)
	0	0
Income (loss)	$0	$0	$0

(b) Should the segment be continued or eliminated?