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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 $350,000 of its fixed costs are avoidable. Segment Income (Loss) Sales $ 1,176,000 Variable costs 840,000 Contribution margin 336,000 Fixed costs 400,000 Income (loss) $ (64,000) (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. Income Increase Segment Elimination Analysis Continue Eliminate (Decrease) 0 0 $ 0 Income (loss) $ 0 $ 0 Check my work 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 $350,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,176,000 840,000 336,000 400,000 $ (64,000) (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 Should the segment be continued or eliminated? Should the segment be continued or eliminated?
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