Marinette Company makes several products, including canoes. The company has been experiencing losses from its canoe segm 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 $3,100,000 Direct materials $ 670,000 Direct labor 720,000 Variable overhead 520,000 Variable selling and administrative 310.000 Total variable costs 2,220.000 Contribution margin 880,000 Tixed costa Direct 595,000 Indirect 520.000 Total fixed costs 1.115.000 Net Income $ (235,000) 1. If canoes are discontinued, calculate the net income lost or gained. Saved Sales Expenses Keep the department Eliminate the department Total expenses Net Income (loss) 2. Should management discontinue the manufacturing of canoes? Yes No