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Marin Company makes several products, including canoes. The company reports a loss from its canoe...

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Accounting

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 $327,500 of its fixed costs are avoidable.
Segment Income (Loss)
Sales $ 1,087,800
Variable costs 777,000
Contribution margin 310,800
Fixed costs 373,000
Income (loss) $ (62,200)
(a) Compute the income increase or decrease from eliminating this segment.
(b) Should the segment be continued or eliminated?

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