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 Sales $3,800,000 Variable costs Direct materials $ 810,000 Direct labor 860,000 Variable overhead 660,000 Variable selling and administrative 380,000 Total variable costs 2,710,000 Contribution margin 1,090,000 Fixed costs Direct 735,000 Indirect 660,000 Total fixed costs 1,395,000 Net Income $ (305,000 1. If canoes are discontinued, calculate the net income lost or gained 2. Should management discontinue the manufacturing of canoes