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. $3,700,000 MARINETTE COMPANY Income Statement-Canoe Segment Sales Variable costs Direct materials $ 790,000 Direct labor 840,000 Variable overhead 640,000 Variable selling and administrative 370,000 Total variable costs Contribution margin Fixed costs Direct 715,000 Indirect 640,000 Total fixed costs Net income 2,640,000 1,060,000 1,355,000 $ (295,000) 1. If canoes are discontinued, calculate the net income lost or gained. 2. Should management discontinue the manufacturing of canoes? 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 canoes 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: Direct materials Direct labor Variable overhead Variable selling and administrative costs Direct fixed costs Indirect fixed costs 790,000 840,000 640,000 370,000 715,000 640,000 Total expenses Net income (loss) 3,995,000 $ (3,995,000) $ The canoe division should be: If the canoe division is eliminated, income will be: Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 Should management discontinue the manufacturing of canoes? Should management discontinue the manufacturing of canoes?