Marin Company makes several products, including canoes. The company reports a loss from its canoe segment...
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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 $335,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,117,200 798,000 319,200 382,000 $ (62,800) (a) Compute the income increase or decrease from eliminating this segment. 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 $335,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,117,200 798,000 319,200 382,000 $ (62,800) (a) Compute the income increase or decrease from eliminating this segment.
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