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. $4,000,000 MARINETTE COMPANY Income Statement-Canoe Segment Sales Variable costs Direct materials $ 850,000 Direct labor 900,000 Variable overhead 700,000 Variable selling and administrative 400,000 Total variable costs Contribution margin Fixed costs Direct 775,000 Indirect 700,000 Total fixed costs Net income 2.850,000 1,150,000 1,475,000 S (325, 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.) Keep the department Eliminate the department Sales Expenses Total expenses Net Income loss Required 1 Required 2 Should management discontinue the manufacturing of canoes? Should management discontinue the manufacturing of canoes?