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. (Leave no cells blank. Enter zeros where appropriate.) $4,000,000 points eBook 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 Print 2,850,000 1,150,000 References 1,475,000 $ (325,000) 1. If canoes are discontinued, calculate the net income lost or gained. Keep the department $ 4,000,000 Eliminate the department Sales Expenses: Direct materials Direct labor Variable overhead 850,000 900,000 700,000 Assignment Chapter 23 i Saved 1. If canoes are discontinued, calculate the net income lost or gained. Keep the department $ 4,000,000 Eliminate the department points Sales Expenses: Direct materials Direct labor Variable overhead Variable selling and administrative costs 850,000 900,000 700,000 400,000 eBook Print References Direct fixed costs Indirect fixed costs Total expenses Net income (loss) 775,000 700,000 4,325,000 (325,000) 700,000 700,000 (700,000) $ $ The canoe division should be: Kept If the canoe division is eliminated, income will be: lower by: $ 375,000 2. Should management discontinue the manufacturing of canoes