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(Solved): Exercise 10-8 (Algo) Segment elimination LO P4 Marin Company makes several products, including cano ...



Exercise 10-8 (Algo) Segment elimination LO P4 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 $332,500 of its fixed costs are avoidable. Segment Income (Loss) Sales$ 1,107,400Variable costs791,000Contribution margin316,400Fixed costs379,000Income (loss)$ (62,600) (a) Compute the income increase or decrease from eliminating this segment. (b) Should the segment be continued or eliminated?



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