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 Variable costs. $3,200,000 Direct materials $690,000 Direct labor 740,000 Variable overhead 540,000 Variable selling and administrative 320,000 Total variable costs Contribution margin 2,290,000 910,000 Fixed costs Direct Indirect 615,000 540,000 Total fixed costs Net income 1,155,000 $ (245,000) 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 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