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. $3,800,000 MARINETTE COMPANY Income Statement-Canoe Segment sales Variable costs Direct materials $ 810,000 Direct labor 860,000 Variable overhead 660,000 Variable selling and administrative 380,000 Total variable costs Contribution margin Fixed costs Direct 735,000 Indirect 660,000 Total fixed costs Net income 2,710,000 1,090,000 1,395,000 $ (305,000) 1. If canoes are discontinued, calculate the net income lost or gained. Keep the department Eliminate the department $ 3,800,000 Sales Expenses: Direct materials Variable overhead Variable selling and administrative costs Direct fixed costs Indirect fixed costs Total expenses Net income (loss) $ 0 $ 3,800,000 The canoe division should be: If the canoe division is eliminated, income will be