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 $340,000 of its fixed costs are avoidable.

(a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated?

Segment Income (Loss)
Sales	$ 1,136,800
Variable costs	812,000
Contribution margin	324,800
Fixed costs	388,000
Income (loss)	$ (63,200)

Complete this question by entering your answers in the tabs below. Compute the income increase or decrease from eliminating this segment