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Chapter 23 - Exercise 5 Exercise 23-8 Income analysis of eliminating departments LO P4 Marinette...

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Accounting

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Chapter 23 - Exercise 5 Exercise 23-8 Income analysis of eliminating departments LO P4 Marinette Company makes several products, including cances. The company has been experiencing losses from its cance segment and is considering dropping that product line. The following information is availoble regarding its canoe segment ALETTE COWY State-cances $3,600,000 variable costs Direct materials $70,000 Direct labor 120,000 Variable overhead 620.000 Variable selling and administrative MO,000 Total variable costs 2,570,000 Contribution margin Mixed costs Direct 95,00 Indirect Total costs 5 (785,100) 1. If canoes 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. 1. cances 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. Heures Red ces It coves we discontinued close the net income lost or gain (Live no cells blank. Entor eros where appropriate Keep the department Eliminate the department Nincome Type here to search 0 100

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