comg 1 Requirements talar there Disc boring Mooring 1. Prepare an incremental analysis to show whether New York Flooring should discontinue the laminate flooring product line. Will discontinuing laminate flooring add $26,000 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? i Data Table Data Product Line Contribution Margin Income Statement For the Year Product lines Sales revenue Wood flooring Laminate flooring Company Total 308,000 $ 126,000 $ 434,000 152,000 88,000 240.000 156,000 $ 38,000 $ 194,000 Less: Variable expenses Contribution margin Less fixed expenses Manufacturing 77 000 55.000 24.000 $ Marketing and administrative 57.000 7.000 (26,000) $ 134.000 62,000 (2.000) Operating income (loss) Top managers of New York Flooring are alarmed by the operating losses. They are considering dropping the laminate flooring product ine company accountants have prepared the following analysis to be make this decision Cac the con lo view the analysts) Totalfixed costs will not change if the company stops selling minate flooring Read the requirements continuing laminate flooring add $20,000 to operating income? Requirement 1. Prepare an incremental analysis to show whether New York Flooring should discontinue the laminate food product line will Explain (Entero in an input box if there is no expected change as a result of discontinung the laminate o g product in this scenario) Incremental Analysis for Discontinuation Decision Contribution margin lost if laminate flooring product line is dropped Less Food cost savings if laminate flooring product line is dropped Operating income if laminate flooring is dropped Ildieu Uy tell upelduly lusses. They die LUSIUCry urupply 0 Requirements lai ere Jisc 1. Prepare an incremental analysis to show whether New York Flooring should discontinue the laminate flooring product line. Will discontinuing laminate flooring add $26,000 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? bring orin Print Print Done mber in the input fields and then click Check Answer i Data Table New York Flooring Product Line Contribution Margin Income Statement For the Year Product lines Sales revenue Wood flooring Laminate flooring Company Total 308,000 $ 126,000 $ 434.000 152,000 88,000 240,000 156,000 $ 38,000 $ 194,000 Less: Variable expenses Contribution margin Less fixed expenses Manufacturing 77,000 55.000 57.000 7,000 134,000 62.000 Marketing and administrative Top managers of New York Flooring are alarmed by their operating losses. They are considering dropping the laminate flooring product line. Company accountants have prepared the following analysis to help make this decision E!! Cck the icon to view the analysis) Totalfoed costs will not change if the company stops selling laminate Song Read the requirements Requirement 1. Prepare an incrementalysis to show whether New York Flooring should discontinue the mine noong product line. Will discontinuing laminate flooring add $26.000 to operating income? Explain (Enter a " in an input box if there is no expected change as a result of discontinuing the Laminate flooring product in this scenario) Incremental Analysis for Discontinuation Decision Contibution agnostin te tooning productie is dropped Less Fed cost savings betooning product line is dropped Operating income m ade tooning is dropped Choose from any list or enten number in the notes and then cox check Answer 6 parts
