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 Sales $2,700,000 Variable costs Direct materials $590,000 640,000 Direct labor Variable overhead 440,000 Variable selling and administrative Total variable costs Contribution margin 270,000 1,940,000 760,000 Fixed costs Direct 515,000 Indirect 440,000 Total fixed costs 955,000 $ (195,000) Net income 1. canoes are discontinued, calculate the net income lost or gained. Eliminate the Keep the department department Sales Expenses: Total expenses 0 Net income (loss) $