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. $2,300,000 MARINETTE COMPANY Income Statement-Canoe Segment Sales Variable costs Direct materials $ 510,000 Direct labor 560,000 Variable overhead 360,000 Variable selling and administrative 230,000 Total variable costs Contribution margin Fixed costs Direct 435,000 Indirect 360,000 Total fixed costs Net income 1,660,000 640,000 795,000 $ (155,000) 1. If canoes are discontinued, calculate the net income lost or gained. 2. Should management discontinue the manufacturing of canoes? 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) 0 $ 0