E8-23A (similar to) s Question Help Top managers of Georgia 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: (Click the icon to view the analysis.) Total fixed costs will not change if the company stops selling laminate flooring Read the requirements Requirement 1. Prepare an incremental analysis to show whether Georgia Flooring should discontinue the laminate flooring product line. Will discontinuing laminate flooring add $26,000 to operating income? Explain. (Enter a "0" in an input box if there is no expected change as a result of discontinuing the laminate flooring product in this scenario.) Data Table Incremental Analysis for Discontinuation Decision Total Contribution margin lost if laminate flooring product line is dropped Less: Fixed cost savings if laminate flooring product line is dropped Georgia Flooring Operating income if laminate flooring is dropped Product Line Contribution Margin Income Statement For the Year Product lines Sales revenue Wood flooring Laminate flooring Company Total $ 308,000 $ 120,000 $ 428,000 158,000 86,000 244,000 Less: Variable expenses Contribution margin $ 150,000 $ 34,000 $ 184,000 Less fixed expenses: Choose from any list or enter any number in the input fields and then click Check Answer. Manufacturing Marketing and administrative 73.000 56,000 53,000 7,000 126,000 63.000 parts remaining Clear $ Operating income (loss 21,000 $ (26,000) $ (5,000)