Exercise 10-8(Algo) Segment elimination LO P4 Marin Company makes several products, including canoes....

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Accounting

Exercise 10-8(Algo) Segment elimination LO P4
Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All its variable costs are avoidable, and $317,500 of its fixed costs are avoidable.
Segment Income (Loss)
Sales $ 1,048,600
Variable costs 749,000
Contribution margin 299,600
Fixed costs 361,000
Income (loss) $ (61,400)
(a) Compute the income increase or decrease from eliminating this segment.
(b) Should the segment be continued or eliminated?

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