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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 conoe segment (Leave no cells blank. Enter zeros where appropriate.) $4,000,000 MARINETTE COMPANY Income Statement-Canoe Segment Sales Variable costs Direct materials $850, eee Direct labor 900,000 Variable overhead 780,000 Variable selling and administrative 480,eee Total variable costs Contribution margin Fixed costs Direct 775,000 Indirect 780,000 Total fixed costs Net income 2,850,888 1,150,000 1,475, $ (325,000) 1. If canoes are discontinued, calculate the net income lost or gained. Keep the department Eliminate the department Sales Expenses: Total expenses Net incomo loss) 2 Should management discontinue the manufacturing of canoes? Yes O No
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