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please finish the question and explain how you got the answer Marinette Company makes several products, including canoes. The company has been experiencing losses from
please finish the question and explain how you got the answer
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. (Leave no cells blank. Enter zeros where appropriate.) $3,300,000 MARINETTE COMPANY Income Statement-Canoe Segment Sales Variable costs Direct materials $ 710,000 Direct labor 760,000 Variable overhead 560,000 Variable selling and administrative 330,000 Total variable costs Contribution margin Fixed costs Direct 635,000 Indirect 560,000 Total fixed costs 2,360,000 940,000 1,195,000 $ (255,000) Net income 1. If canoes are discontinued, calculate the net income lost or gained. Keep the department $ 3,300,000 Eliminate the department Sales Expenses Direct materials 710,000 Net income $ (255,000) 1. If canoes are discontinued, calculate the net income lost or gained. Keep the department $ 3,300,000 Eliminate the department Sales Expenses Direct materials 710.000 Direct labor 760,000 Variable overhead 560,000 Variable selling and administrative costs Direct fixed costs 330 000 635,000 560,000 Indirect fixed costs Total expenses 3,555,000 (255,000) Net income (loss) $ $ 0 The canoe division should be If the canoe division is eliminated, income will beStep by Step Solution
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