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. $2,500,000 MARINETTE COMPANY Income Statement-Canoe Segment Sales Variable costs Direct materials $ 550,000 Direct labor 600,000 Variable overhead 400,000 Variable selling and administrative 250,000 Total variable costs Contribution margin Fixed costs Direct 475,000 Indirect 400,000 Total fixed costs Net income 1,800,000 700,000 875,000 $ (175,000) 1. If canoes are discontinued, calculate the net income lost or gained. 2. Should management discontinue the manufacturing of canoes