Marin Company makes several products, including canoes. The company reports a loss from its canoe segment (see below). All itsvariable costs are avoidable, and $345,000 of its fixed costs are avoidable.Segment Income (Loss).SalesVariable costsContribution marginFixed costsIncome (loss)(a) Compute the income increase or decrease from eliminating this segment.(b) Should the segment be continued or eliminated?QAZComplete this question by entering your answers in the tabs below.Required A Required BCompute the income increase or decrease from eliminating this segment.Segment Elimination AnalysisIncome (loss)::FI2WS-0%$ 1,156,400826,000330,400394,000$ (63,600)F23EDContinue80F3MAR29< Required A$4REliminateQF4F%5F5Income Increase(Decrease)< PrevTRequired B >G10 of 11n tv6F6Y&7H«F7Nex>U8DIIJFBDD9XCVBNMF9KAOF100P

The variable costs can be avoided completed on the elimination of any segment. The fixed costs can…

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

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

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 $330,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,097, 600 784,000 313,600 376,000 $ (62,400) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated?