6Please answer all requirements and explain
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Top managers of Maine Fooring are alarmed by their operating losses. They are con dening dropping the laminate flooring product in Company accountants have prepared the folowing salysis to help make this decision Click the view the analysis) Total fined costs will not change the company stops saling laminate fooring Read the D Requirement 1. Prepare an inenumara analysis to row water Maine Flooring should discontinue the urinata tooring production. We discontinuing lumata forno a 558.000 ta aparating inomer Explan. (Endura or in an incut feel as rol of laminate Incremental Analysis for Discontinuation Decision Total Data table Contration margnostif farminie foonna product in spoed Los: Festing it inte flooring product line is op Operating income itominate toong is dropped 1 Maine Flooring 2 Product Line Contribution Margin income Statement Requirements 3 For the Year Product lines 1. Prepare an inental analysis to show whether Maine Forng should continue the ring Laminate productie Weds laminate flooringasd 18.000 to operating noe? Expun. Wood flooring flooring Company Total 2. Asume at the company can avod $22,000 of Brad expenses by contrung the laminate forng Ses revenue 300,000 134.000 product in the cost redirected out of the mint foring product inel Prepare an incremental analysis show where company should stop in mine for TL Variable expenses 100.000 14.000 237.000 2. Now, how of the feed costs ansigned to winale Mooring are directed costs and cante Contribution margin 147,000 50.000 107 000 avoided the company stops wing tante flooring Howwww, marketing has concluded wood fooring ile would be adversely wed by discontinuing the minatooring in calore warto by both from Loe ed op the same meters Wood Flooring production and he would dedine 10% What should the company do? 10 Manufacturing 6000 120000 11 Marketing and administrative 58,000 15000 73,000 12 Operating income one 16,000 118000 2.000 73.000 fernapers of Man ing warmed contracts. They come for Com Chow the Total collagen in Read the Requirement. Prepare an incremental analysis to show with Management for route Weiterungen Bergen there is no expected range of contenente Incremental Analysis for Discontinuation Decision Total Coton marginate flooring produced Data table Fedco savingsmate fooring practiced Operating income raminate flooring reped A 1 More 2 Pine Can Marina The Year Requirements Pris Lune We Cenya 1. Prepare a incremental is to show whether Maine Flooring who come the more See 300.000 product line will discontinuing laminate flooring add $18.000 operating income? Explain 1 Varia 21000 2. Assume that the company can avoid 522.000 of fred expenses by discontinuing the last og 1 Garan 147.00 50.000 product line these costs are directed costs of the laminate floor producine Prepare an incremental analysis to show whether the company should stop seling laminate forng Les 3. Now, assume that all of the fired colgned to laminate flooring are directed comandante 10 Maturg 3.000 avoided in the company stops selling tumate flooring However, marketing has concluded that wood flooring 15 000 Sales would be adversely affected by discontinuing the laminate flooring in (retailers want to buy both from Marketing and administrative the same supplier) Wood Flooring production and sales would dece 10%What should the corny 5 16:00 Operating income
