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 $342,500 of its fixed costs are avoidable. Segment Income (Loss) Sales $ 1,146,600 Variable costs 819,000 Contribution margin 327,600 Fixed costs 391,000 Income (loss) $ (63,400) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated?

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 $342,500 of its fixed costs are avoidable. Segment Income (Loss) Sales $ 1,146,600 Variable costs 819,000 Contribution margin 327,600 Fixed costs 391,000 Income (loss) $ (63,400) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 16MC: Which of the following methods of cost estimation relies on only two data points? A. the high-low...

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Segment Income (Loss)
Sales	$ 1,146,600
Variable costs	819,000
Contribution margin	327,600
Fixed costs	391,000
Income (loss)	$ (63,400)

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