Marinette Company makes several products, including canoes. 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. MARINETTE COMPANY Income Statement Canoe Segment $1,950,000 Sales Variable costs $450,000 Direct materials 470,000 Direct labor 320,000 Variable overhead Variable selling and administrative 170,000 1,410,000 Total variable costs 540,000 Contribution margin Fixed costs 535,000 Direct 240,000 Indirect Total fixed costs 775,000 $(235,000) Net income