Marinette Company makes several products, including canoes. The company has been experiencing losses from its canoe segm- and is considering dropping that product line. The following information is available regarding its canoe segment. Sales Variable costs Direct materials Direct labor MARINETTE COMPANY Income Statement-Canoe Segment Variable overhead Variable selling and administrative Total variable costs Contribution margin Fixed costs Direct Indirect Total fixed costs Net income $ 470,000 520,000 320,000 210,000 395,000 320,000 $2,100,000 1,520,000 580,000 715,000 $ (135,000) 1. If canoes are discontinued, calculate the net income lost or gained. 2. Should management discontinue the manufacturing of canoes?
Marinette Company makes several products, including canoes. The company has been experiencing losses from its canoe segm- and is considering dropping that product line. The following information is available regarding its canoe segment. Sales Variable costs Direct materials Direct labor MARINETTE COMPANY Income Statement-Canoe Segment Variable overhead Variable selling and administrative Total variable costs Contribution margin Fixed costs Direct Indirect Total fixed costs Net income $ 470,000 520,000 320,000 210,000 395,000 320,000 $2,100,000 1,520,000 580,000 715,000 $ (135,000) 1. If canoes are discontinued, calculate the net income lost or gained. 2. Should management discontinue the manufacturing of canoes?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please do not give solution in image format thanku
![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.
Sales
Variable costs
Direct materials
Direct labor
MARINETTE COMPANY
Income Statement-Canoe Segment
Variable overhead
Variable selling and administrative
Total variable costs
Contribution margin
Fixed costs
Direct
Indirect
Total fixed costs
Net income
$ 470,000
520,000
320,000
210,000
395,000
320,000
$2,100,000
1,520,000
580,000
715,000
$ (135,000)
1. If canoes are discontinued, calculate the net income lost or gained.
2. Should management discontinue the manufacturing of canoes?
Complete this question by entering your answers in the tabs below.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2781b477-a13d-4959-ac03-8179b0539c9f%2F55b0b093-7475-4146-b407-48fa498d2d71%2F3pzdld_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
Sales
Variable costs
Direct materials
Direct labor
MARINETTE COMPANY
Income Statement-Canoe Segment
Variable overhead
Variable selling and administrative
Total variable costs
Contribution margin
Fixed costs
Direct
Indirect
Total fixed costs
Net income
$ 470,000
520,000
320,000
210,000
395,000
320,000
$2,100,000
1,520,000
580,000
715,000
$ (135,000)
1. If canoes are discontinued, calculate the net income lost or gained.
2. Should management discontinue the manufacturing of canoes?
Complete this question by entering your answers in the tabs below.
![Required 1
Required 2
If canoes are discontinued, calculate the net income lost or gained. (Leave no cells blank. Enter zeros where appropriate.)
Sales
Expenses:
Total expenses
Net income (loss)
Required 1 Required 2
Keep the
Eliminate the
department department
0 $
Should management discontinue the manufacturing of canoes?
Should management discontinue the manufacturing of canoes?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2781b477-a13d-4959-ac03-8179b0539c9f%2F55b0b093-7475-4146-b407-48fa498d2d71%2F6ik4psb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required 1
Required 2
If canoes are discontinued, calculate the net income lost or gained. (Leave no cells blank. Enter zeros where appropriate.)
Sales
Expenses:
Total expenses
Net income (loss)
Required 1 Required 2
Keep the
Eliminate the
department department
0 $
Should management discontinue the manufacturing of canoes?
Should management discontinue the manufacturing of canoes?
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education