Marinette Company makes several products, including canoes. The company has been

Question

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 Sales Variable costs $2,000,000 $450,000 500,000 300,000 200,000 Direct materials .. Direct labor Variable selling and administrative Total variable costs 1450.000 550,000 Fixed costs Direct.. 375,000 300,000 675,000 Net income $(125.000)

Explanation / Answer

Answer:

Revenue Lost 2000000 Variable cost Saved Direct material 450000 Direct labor 500000 Variable overhead 300000 Variable selling and administrative 200000 Total variable cost saved 1450000 Contribution margin lost 550000 Direct fixed cost saved 375000 Income lost 175000

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.