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. $3,000,000 MARINETTE COMPANY Income Statement-Canoe Segment Sales Variable costs Direct materials $ 650,000 Direct labor 700,000 Variable overhead 500,000 Variable selling and administrative 300,000 Total variable costs Contribution margin Fixed costs Direct 575,000 Indirect 500,000 Total fixed costs Net income 2,150,000 850,000 1,075,000 $ (225,000) 1. If canoes are discontinued, calculate the net income lost or gained. 2. Should management discontinue the manufacturing of canoes? 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 $ 3,000,000 Eliminate the department $ 0 Sales Expenses: Direct materials 0 Direct labor 0 Variable overhead 0 650,000 700,000 500,000 300,000 575,000 500,000 0 Variable selling and administrative costs Direct fixed costs 575,000 X 1,075,000 X Indirect fixed costs Total expenses Net income (loss) 3,225,000 $ (225,000) 1,650,000 $(1,650,000) The canoe division should be: Eliminated If the canoe division is eliminated, income will be: lower by: 850,000 X 1. If canoes are discontinued, calculate the net income lost or gained. 2. Should management discontinue the manufacturing of canoes? Answer is not complete. 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?