help with requirement 3 only pls .
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 foxed 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 $30,000 to operating income? Explain. (Enter a "O" in an input box if there is no expected change as a result of discontinuing the laminate flooring product in this scenario.) Total 42,000 Incremental Analysis for Discontinuation Decision Contribution margin lost if laminate flooring product line is dropped Less Fored cost savings if laminate flooring product line is dropped Operating income lost if laminate flooring is dropped laminate flooring is $ 42,000 Decision: Do not drop laminate flooring product line. It is incorrect to conclude that dropping laminate flooring would add $30,000 to operating income. If the company discontinues the laminate flooring product line.it incur foxed expenses allocated to laminate flooring Requirement 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 (Enter a ' in an input box if there is no expected change as a result of discontinuing the laminate flooring in this scenario.) 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: Per Click the icon to view the analysis.) Total fixed costs will not change if the company stops selling laminate flooring Read the requirements Requirement 2. Assume that the company can avoid $31,000 of fixed expenses by discontinuing the laminate flooring product line (these costs are direct foxed costs of the laminate flooring product line). Prepare an incremental analysis to show whether the company should stop seling laminate flooring (Enter a "O" in an input box there is no expected change as a result of discontinuing the laminate flooring in this scenario.) Incremental Analysis for Discontinuation Decision Total Contribution margin lost i laminate fooring product line is dropped $ 42,000 Less: Foxed cost savings if laminate flooring product line is dropped 31.000 Operating income lost laminate flooring is dropped $ 11,000 Decision: Do not drop the laminate flooring product line because, assuming $31,000 of fixed expenses attributable to the laminate flooring product line can be avoided, the loss of contribution margin will still exceed the foxed cost savings Requirement 3. Now, assume that all of the foxed 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? Prepare an incremental analysis. (Enter a "O" in an input box if there is no expected change as a result of discontinuing the laminate flooring line in this scenario) Incremental Analysis for Disntinuation Decision Total ccount Alas msider Dared T alysis) 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 foxed costs will not change if the company stops soling laminate flooring Read the requirements Less: Foxed cost savings if laminate flooring product line is dropped lost $ 11.000 if laminate flooring is dropped Read th Operating income Decision: Do not drop the laminate flooring product line because, assuming $31,000 of faxed expenses attributable to the laminate flooring product line can be account avoided, the loss of contribution margin will still exceed the fixed cost savings. of Vert Requirement 3. Now, assume that all of the fixed costs assigned to laminate flooring are direct fixed costs and can be avoide it the company stops selling laminate The Lam flooring. However, marketing has concluded that wood flooring sales would be adversely affected by discontinuing the laminate flooring line (retailers want to buy both Elle from the same supplier Wood flooring production and sales would decline 10%. What should the company do? re alarmi Prepare an incremental analysis. (Enter a noin an input box if there is no expected change as a result of discontinuing the laminate flooring line in this scenario.) ops selling Incremental Analysis for Discontinuation Decision Total Laminate flooring contribution margin lost i laminate flooring product line is dropped $ 42.000 account Wood flooring contribution margin lost laminate flooring product line is dropped Of New The Lami Less: Fixed cost savings laminate flooring product line is dropped he Followi Operating income gained if laminate flooring is dropped are alam hilar to) BO ia Flooring are alarmed by their operating losses. They are considering dropping the laminate flooring product line, Compan analys iew the Data Table et chan ngs if la lost op the lar g product line contributi w, assum Georgia Flooring Product Line Contribution Margin Income Statement For the Year Product lines Wood flooring Laminate flooring Company Total Sales revenue $ 308,000 $ 122,000 $ 430,000 Less: Variable expenses 155,000 80,000 235,000 Contribution margin $ 153,000 S 42,000 $ 195,000 Less fixed expenses: Manufacturing 70,000 57,000 127,000 56,000 15,000 71,000 Marketing and administrative $ 27,000 $ Operating income (loss) (30,000) $ (3,000) pany stops selli (retailers war pg line in this sc lier). Wod intal analy cremental sontribution tribution avings if la gaing Print Done list or ente d cost savi A Requirements income Do not drog the loss of ent 3. Now lowever, ma ame supplie 1. Prepare an incremental analysis to show whether Georgia 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? in increment h this Incr flooring con
