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 Direct materials Direct labor Variable overhead Variable selling and administrative Total variable costs Contribution margin. Fixed costs Direct $3,000,000 $ 650,000 700,000 500,000 300,000 2,150,000 850,000 575,000 500,000 Indirect Total fixed costs Net income 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 If canoes are discontinued, calculate the net income lost or gained. (Leave no cells blank. Enter zeros where appropriate.) Sales Expenses: Keep the department Eliminate the department