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. $3,300,000 MARINETTE COMPANY Income Statement-Canoe Segment Sales Variable costs Direct materials $ 710,000 Direct labor 760,000 Variable overhead 560,000 Variable selling and administrative 330,000 Total variable costs Contribution margin Fixed costs Direct 635,000 Indirect 560,000 Total fixed costs Net income 2,360,000 940,000 1,195,000 $ (255,000) 1. If canoes are discontinued, calculate the net income lost or gained. 2. Should management discontinue the manufacturing of canoes? If canoes are discontinued, calculate the net income lost or gained. (Leave no cells blank. Enter zeros where appropriate.) Keep the Eliminate the department department $ 3,300,000 $ 0 Sales Expenses: Direct materials Direct labor 710,000 760,000 560,000 330,000 Variable overhead Variable selling and administrative costs 2,360,000 Direct fixed costs 635,000 Indirect fixed costs 0 Total expenses Net income (loss) 2,995,000 2,360,000 305,000 $ (2,360,000) The canoe division should be: Kept If the canoe division is eliminated, income will be: lower by