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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
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 Statement-Canoe Segment $1,940,000 Sales Variable costs Direct materials Direct labor Variable overhead Variable selling and administrative $540,000 500,000 360,000 220,000 Total variable costs 1,620,000 Contribution margin Fixed costs 320,000 395,000 270,000 Indirect Total fixed cost 665,000 Net income $(345,000)
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