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1. Prepare an incremental analysis to show whether Alaska Flooring should discontinue the laminate flooring product line. Will discontinuing laminate flooring add $30,000 to operating

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1. Prepare an incremental analysis to show whether Alaska Flooring should discontinue the laminate flooring product line. Will discontinuing laminate flooring add $30,000 to operating income? Explain. 2. Assume that the company can avoid $31,000 of fixed expenses by discontinuing the laminate flooring product line (these costs are direct fixed costs of the laminate flooring product line). Prepare an incremental analysis to show whether the company should stop selling laminate flooring. 3. Now, assume that all of the fixed costs assigned to laminate flooring are direct fixed costs and can be avoided if the company stops selling laminate flooring. However, marketing has concluded that wood flooring sales would be adversely affected by discontinuing the laminate flooring line (retailers want to buy both from the same supplier). Wood flooring production and sales would decline 10%. What should the company do? Top managers of Alaska Flooring are alarmed by their operating losses. They considering dropping the laminofooring producine Company accountants have prepared flowing analysis to help makes decision Click the icon to view the analysis Totalfred costs will not change the company stops selling laminate fooring Read the moments Requirements. Prepare an incremental analysis to show whether Alaska Flooring should discontinue the laminate flooring product Ine. We discontinuing to log od $30,000 to operating nome? Ex(Entra in an input box there is no expected change as a result of discontinuing the laminate fooring product in this song) Incremental Analysis for Discontinuation Decision Total Contribution margin of mine fooring productie is dropped Data Table Less Fixed co sings i laminate fooring product line is dropped Operating income ir laminate flooring is dropped Alaska Flooring Product Line Contribution Margin Income Statement For the Year Product lines Wood flooring Laminate flooring Company Total Serve $ 300.000 12,000 5 452.000 154.000 Los Varai penses 12.000 236.000 146,000 $ 50.000 $ 190.000 1.000 Manufacturing Marketing and administre Operating income 54,000 13.000 18.000 (0.000 140,000 73.000 117.000 Cum in the nuts and thanks

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