Business, 28.05.2020 04:58 lolirdc

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. MARINETTE COMPANY Income Statement—Canoe Segment Sales $ 2,600,000 Variable costs Direct materials $ 570,000 Direct labor 620,000 Variable overhead 420,000 Variable selling and administrative 260,000 Total variable costs 1,870,000 Contribution margin 730,000 Fixed costs Direct 495,000 Indirect 420,000 Total fixed costs 915,000 Net income $ (185,000 ) 1. If canoes are discontinued, calculate the net income lost or gained. 2. Should management discontinue the manufacturing of canoes?

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Marinette Company makes several products, including canoes. The company has been experiencing losses...

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