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 Theone Statement Canoe Sement Sales $2,000,000 Variable costs Direet materials 3 450,000 Direct labor 500,000 Variable overhead 300,000 Variable selling and administrative 200.000 Total variable costs 1,450,000 Contribution margin 550,000 Fixed costo Direct 375,000 Indirect 300,000 Total fixed costs 675.000 Net Income $(125,000) 1. If canoes are discontinued, calculate the net income lost or gained. Keep the department Eliminate the department Sales Expenses $ 450,000 500,000 300,000 200,000 van GURE LUSS Direct materials Direct labor Variable overhead Variable selling and administrative Total variable costs Contribution margin Fixed costs Direct Indirect Total fixed costs Net income 1,450,000 550,000 375,000 300,000 675,000 $(125,000) 1. If canoes are discontinued, calculate the net income lost or gained. Keep the department Eliminate the department Sales Expenses: Total expenses Net income (loss) $ 0 $ 2. Should management discontinue the manufacturing of canoes? Yes No