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 $320,000 of Its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,058,400 756,000 302,400 364,000 $ (61,600) (a) Compute the Income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated? Complete this question by entering your answers in the tabs below. Required A Required B Compute the income increase or decrease from eliminating this segment. Segment Elimination Analysis Continue Eliminate Income Increase (Decrease) 0 0 Income (loss) $ 0 $ 0 $ < Required A Required B >
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 $320,000 of Its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,058,400 756,000 302,400 364,000 $ (61,600) (a) Compute the Income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated? Complete this question by entering your answers in the tabs below. Required A Required B Compute the income increase or decrease from eliminating this segment. Segment Elimination Analysis Continue Eliminate Income Increase (Decrease) 0 0 Income (loss) $ 0 $ 0 $ < Required A Required B >
Chapter1: Financial Statements And Business Decisions
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