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Marinette Company makes several products, including cances. The company has been experiencing losses from its canoe segment and is considering dropping that product line. The
Marinette Company makes several products, including cances. The company has been experiencing losses from its canoe segment and is considering dropping that product line. The following information is available regarding its canoe segment $2,000,000 HRINETTE COMPANY Those Statement-Cance segment Sales Variable costs Direct materials $450,000 Direct Labor 500.000 Variable overhead 300,000 Variable selling and administrative 200.000 Total variable conta Contribution margin Tixed conta Direct 375,000 Indirect 300.000 Total fixed costs Not Income 3,450,000 550,000 675,000 $(125,000) 1. If canoes are discontinued, calculate the net income lost or gained. 2. Should management discontinue the manufacturing of cances? Complete this question by entering your answers in the tabs below. Required Required 2 If canoes are discontinued, calculate the net income lost or gained. (leave no cells blank Enter zeros where appropriate.) Keep the department Eliminate the department Required 1 Required 2 If canoes are discontinued, calculate the net income lost or gained. (Leave no cells blank. Enter ze Keep the department Eliminate the department Sales Expenses: Total expenses Net income (loss) Required 1 Required 2 Should management discontinue the manufacturing of canoes? Should management discontinue the manufacturing of canoes?
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