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 $ 510,000 560,000 360,000 230,000 435,000 360,000 $2,300,000 1,660,000 640,000 795,000 $ (155,000)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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
Variable overhead
Variable selling and administrative
Total variable costs
Contribution margin
Fixed costs
Direct
Indirect
Total fixed costs
Net income
Income Statement-Canoe Segment
MARINETTE COMPANY
Required 1 Required 2
Sales
Expenses:
$ 510,000
560,000
360,000
230,000
Total expenses
Net income (loss)
435,000
360,000
$2,300,000
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.
1,660,000
640,000
795,000
$ (155,000)
If canoes are discontinued, calculate the net income lost or gained. (Leave no cells blank. Enter zeros where appropriate.)
Keep the
department
Eliminate the
department
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 Variable overhead Variable selling and administrative Total variable costs Contribution margin Fixed costs Direct Indirect Total fixed costs Net income Income Statement-Canoe Segment MARINETTE COMPANY Required 1 Required 2 Sales Expenses: $ 510,000 560,000 360,000 230,000 Total expenses Net income (loss) 435,000 360,000 $2,300,000 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. 1,660,000 640,000 795,000 $ (155,000) If canoes are discontinued, calculate the net income lost or gained. (Leave no cells blank. Enter zeros where appropriate.) Keep the department Eliminate the department
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