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Marin Company makes several products, including canoes. The company reports a loss from its canoe...

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Accounting

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 $340,000 of its fixed costs are avoidable.

(a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated?

Segment Income (Loss)
Sales $ 1,136,800
Variable costs 812,000
Contribution margin 324,800
Fixed costs 388,000
Income (loss) $ (63,200)

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Complete this question by entering your answers in the tabs below. Compute the income increase or decrease from eliminating this segment

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