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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

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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 following information is available regarding its canoe segment. $2,700,000 MARINETTE COMPANY Incone Statement-Canoe Seyment Sales Variable costs Direct materials $ 590,000 Direct labor 640,000 Variable overhead 440,000 Variable selling and administrative 270,000 Total variable costs Contribution margin Fixed costs Direct 515.000 Indirect 440,000 Total fixed costs Net Income 1,940,000 760,000 955,00 5 (195,000 1. If cances are discontinued, calculate the net income lost or gained 2. Should management discontinue the manufacturing of cances Complete this question by entering your answers in the tabs below Required 1 Required 2 If cances are discontinued, calculate the net income out or gained we no cells blank theros where propriate Keep the department Eliminate the department Sales Expenses 1. If canoes are discontinued, calculate the net income lost or gained 2. Should management discontinue the manufacturing of canoes? Complete this question by entering your answers in the tabs below. 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 (los) $ 0$ 0 Required Required 2 > $2,700,000 MARINETTE COMPANY Income Statement-Cance Segment Sales Variable costs Direct materials $ 590,00 Direct labor 640,00 Variable overhead 440,000 Variable selling and administrative 270,000 Total variable costs Contribution margin Fixed costs Direct 515,000 Indirect 440.000 Total fixed costs Net Income 1,940,000 760,000 955,000 $ (195,000) 1. If canoes are discontinued, calculate the net income lost or gained. 2. Should management discontinue the manufacturing of canoes? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Should management discontinue the manufacturing of cances Should management discontinue the manufacturing of cances?

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