FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 $330,000 of its fixed costs are avoidable.
Segment Income (Loss)
Sales
Variable costs
Contribution margin
Fixed costs
Income (loss)
$ 1,097, 600
784,000
313,600
376,000
$ (62,400)
(a) Compute the income increase or decrease from eliminating this segment.
(b) Should the segment be continued or eliminated?
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Transcribed Image Text: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 $330,000 of its fixed costs are avoidable. Segment Income (Loss) Sales Variable costs Contribution margin Fixed costs Income (loss) $ 1,097, 600 784,000 313,600 376,000 $ (62,400) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated?
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