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 $345,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,156,400 826,000 330,400 394,000 $ (63,600) (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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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 $345,000 of its fixed costs are avoidable.
Segment Income (Loss).
Sales
Variable costs
Contribution margin
Fixed costs
Income (loss)
(a) Compute the income increase or decrease from eliminating this segment.
(b) Should the segment be continued or eliminated?
Q
A
Z
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.
Segment Elimination Analysis
Income (loss)
::
FI
2
W
S
-0%
$ 1,156,400
826,000
330,400
394,000
$ (63,600)
F2
3
E
D
Continue
80
F3
MAR
29
< Required A
$
4
R
Eliminate
Q
F4
F
%
5
F5
Income Increase
(Decrease)
< Prev
T
Required B >
G
10 of 11
n tv
6
F6
Y
&
7
H
«
F7
Nex>
U
8
DII
J
FB
DD
9
XCVBNM
F9
K
A
O
F10
0
P
Transcribed Image Text: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 $345,000 of its fixed costs are avoidable. Segment Income (Loss). Sales Variable costs Contribution margin Fixed costs Income (loss) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated? Q A Z 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. Segment Elimination Analysis Income (loss) :: FI 2 W S -0% $ 1,156,400 826,000 330,400 394,000 $ (63,600) F2 3 E D Continue 80 F3 MAR 29 < Required A $ 4 R Eliminate Q F4 F % 5 F5 Income Increase (Decrease) < Prev T Required B > G 10 of 11 n tv 6 F6 Y & 7 H « F7 Nex> U 8 DII J FB DD 9 XCVBNM F9 K A O F10 0 P
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