Exercise $10-8($Algo$)$ Segment elimination LO P$4$

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 $$337,500$ of its fixed costs are avoidable.

Segment Income $($Loss$)$Sales$ $1,127,000$Variable costs$805,000$Contribution margin$322,000$Fixed costs$385,000$Income $($loss$)$$ $(63,000)$

$($a$)$ Compute the income increase or decrease from eliminating this segment.

$($b$)$ Should the segment be continued or eliminated?