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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 $300,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 980,000 700,000 280,000 340,000 $ (60,000) (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. Continue Elimina Segment Elimination Analysis Contribution margin Direct labor Direct materials Required A Fixed costs n Direct labor Direct materials Fixed costs Required Sales Variable costs Complete this question by entering your answers in the tabs below. Required A Required B Should the segment be continued or eliminated? Should the segment be continued or eliminated
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