Please explain your answer in a legible manner. Thank you so much for your time !!!

Exercise 23-13 Income analysis of eliminating departments A1 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. Should management discontinue the manufacturing of canoes? Support your decision. MARINETTE COMPANY Income statement-Canoe Segment $2,000,000 Sales Variable costs Direct materials $450,000 500,000 Direct labor Variable overhead 300,000 Vartable selling and administrative 200,000 I 450.000 Total variable costs 550,000 Contribution margin Fbced costs 375,000 Direct................. 300.000 Indirect................ 675,000 Total fixed costs. (125.000) Check Income impact if canoe segment dropped, $(175,000)