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 StatementCanoe Segment
Sales				$	3,600,000
Variable costs
Direct materials	$	770,000
Direct labor		820,000
Variable overhead		620,000
Variable selling and administrative		360,000
Total variable costs					2,570,000
Contribution margin					1,030,000
Fixed costs
Direct		695,000
Indirect		620,000
Total fixed costs					1,315,000
Net income				$	(285,000	)

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 $ 3,600,000 Eliminate the department Sales Expenses: Total expenses Net income (loss) $ 3,600,000 $ 0 The canoe division should be: If the canoe division is eliminated, income will be: Required 1 Required 2 Should management discontinue the manufacturing of canoes? Should management discontinue the manufacturing of canoes