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 $3,eee, eee Variable costs Direct materials $ 650, eee Direct labor 780, eee Variable overhead 500,000 Variable selling and administrative 380,000 Total variable costs 2,158,eee Contribution margin 85e,eee Fixed costs Direct 575, eee Indirect 500, een Total fixed costs 1,075, eee Net income $ (225, eee) 1. If canoes are discontinued, calculate the net Income lost or gained. 2 Should management discontinue the manufacturing of canoes? Complete this question by entering your answers in the tabs below. Required 1 Required 2 If cances are discontinued, calculate the net income lost or gained. (Leave no cells blank. Enter zeros where appropriate.) Keep the department Eliminate the department Sales Expenses: Total expenses Net income (loss) Varto Company has 11.200 units of its sole product in Inventory that it produced last year at a cost of $33 each. This year's model is superior to last year's, and the 11,200 units cannot be sold at last year's regular selling price of $52 each. Varto has two alternatives for these items: (1) they can be sold to a wholesaler for $14 each or 2) they can be processed further at a cost of $174.900 and then sold for $29 each. Should Varto sell the products as Is or process further and then sell them? INCREMENTAL REVENUE AND COST OF ADDITIONAL PROCESSING Revenue if processed further Revenue if sold as is Incremental revenue Incremental net income(Loss) The company should