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Exercise 25-8 (Algo) 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 $350,000 of its fixed costs are avoidable, Segment Income (Loss) Sales $ 1,176,000 Variable costs 840,000 Contribution margin 336,000 Fixed costs 400,000 Income (loss) $ 64,000 (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated? Complete this question by entering your answers in the tabs below. Required A Required B Compute the income increase or decrease from eliminating this segment. Continuo Segment Elimination Analysis Income Increase Eliminate (Decrease Income (los) Required > Exercise 25-8 (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 $350,000 of its fixed costs are avoidable. Segment Income (Loss) Sales $ 1,176,000 Variable costs 840,000 Contribution margin 336,000 Fixed costs 400,000 Income (loss) $64,880) (a) Compute the income increase or decrease from eliminating this segment (b) Should the segment be continued or eliminated? Complete this question by entering your answers in the tabs below. Required A Required B Should the segment be continued or eliminated? Should the segment be continued or eliminated? QS 25-15 (Algo) Keep or replace LO P5 Rory Company has an old machine with a book value of $81,000 and a remaining five-year useful life. Rory is considering purchasing a new machine at a price of $109,000. Rory can sell its old machine now for $83,000. The old machine has variable manufacturing costs of $36,000 per year. The new machine will reduce variable manufacturing costs by $14,400 per year over its five-year useful life. (a) Prepare a keep or replace analysis of income effects for the machines. (b) Should the old machine be replaced? Complete this question by entering your answers in the tabs below. Required A Required a Should the old machine be replaced? Should the old machine be replaced?

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