6 CHAPTER E8-23A whether to discontinue a product line pared the following analysis to help make this 51,000 0,000 al fixed costs will not change if the company stops selling laminate flooring. the laminate flooring product line. Will discontinuing laminate flooring add $28,000 to Assume that the company can avoid $32,000 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. 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 2. 3. sely affected by discontinuing the laminate flooring line (retailers want to buy both from the same sup- plier), wood flooring production and sales would decline 10%, what should the com- pany do