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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

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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. $3,000,000 MARINETTE COMPANY Income Statement-Cance Segment Sales Variable costs Direct materials $ 650,000 Direct labor 700,000 Variable overhead 500,000 Variable selling and administrative 300,000 Total variable costs Contribution margin Fixed costs Direct 575,000 Indirect 500.000 Total fixed costs Net income 2,150,000 850,000 1,075,000 SK225,000) 1. If canoes are discontinued, calculate the net income lost or gained. 2. Should management discontinue the manufacturing of cances? 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 Sale Expenses 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: Total expenses Net income (los) Required 2 > 300,000 2,150,000 850,000 Variable selling and administrative Total variable conta Contribution margin Pixed costs Direct Indirect Total fixed costs Net income 575,000 500,000 1,075,000 $ (225,000) 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 Should management discontinue the manufacturing of cances? Should management discontinue the manufacturing of canoes?

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