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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 MARINETTE COMPANY Incone Statement-Canoe Segment Sales $2,600,000 Variable costs Direct materials $570,000 Direct labor 620,000 Variable overhead 420,000 Variable selling and administrative 260,000 Total variable costs 1,870,000 Contribution margin 730,000 Fixed costs Direct 495,000 Indirect 420.000 Total fixed costs 915,000 Net Income (185,000) ok Tit 1. If cances are discontinued, calculate the net incomo 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 cances 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 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 foss) Recured Required 2 > 420,000 260,000 1,870,000 730,000 Variable overhead Variable selling and administrative Total variable costs Contribution margin Fixed costs Direct Indirect Total fixed costs Net income 495,000 420,000 915,000 $ (185,000) 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 canoes? Should management discontinue the manufacturing of canoes?

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