Homework: Chapter 8 Homework (required) 3 of 10 (9 complete) Score: 0 of 1 pt HW Score: 77.83%, 7780 10 ots E8-23A (similar to) E Queation 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: E (click te icon to view the analysis.) Total foxed costs will not change if the company stops selling laminate flooring Read the Requirement 1. Prepare an incremental analysis to show whether Georgia Flooring should discontinue the laminate flooring product line. Will discontinuing laminate flooring add $32,000 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.) 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 Operating income Choose from any list or enter any number in the input fields and then click Check Final Check Clear All -sphing Info ACC241 Uses of Acctg Homework: Chapter 8 Homework (required) HW Score: 77.83%,7.70 10 3 of 10 9 complote) Score: 0 of 1 pt E Question Heip E8-23A (similar to) Top managers of Georgia Flooring are alarmed by the ave propared th folowing analynis to help make this Data Table decision EEE (Click the ioon to view the analysis.) Total fixed costs will not change if the company stops Road the summers. Georgia Flooring Product Line Contribution Margin Income Statement For the Year flooring add $32,000 to operating income? Explain. Requirement 1. Prepare an incremental analysis to s Enter a "0" in an input box if there is no expected cha Product lines Incremental Analysis for Discontinuatio Company Total Laminate flooring Wood flooring Contribution margin lost if laminate flooring product Less Fixed cost savings if laminate flooring product Operating income 38,000 241,000 197,000 130,000 $ 90,000 40,000 $ 308,000 $ 151,000 Sales revenue if laminateLess: Variable expenses if Contribution margin Less fixed expenses 157,D00 S 77,000 58,000 22,000 $ 57,000 15,000 134,000 73.000 10,000) Manufacturing Marketing and administrative (32,000) S Operating income (loss) Print Done Choose from any list or enter any number in the in Clear All Final Check (similar to) pers of Georgia Flooring are alarmed by thoir operating losses. They are considering dropping the laminate flooring the icon to view the analysis.) costs will not change if the company stops requirements product line. Company accountants have preparod the following analysis to help make this add $32,000 to operating income? Explain. ent 1. Prepare an incremental analy O* in an input box if there is no expec an . Prepare an incremental analysis to show whether Georgia Flooring should discontinue the laminate flooring Analysis for Discon. Incremental Analysis for ion margin lost if laminate flooring pr2. Assume that the company can avoid $33,000 of foxed expenses by discontinuing the laminate flooring ed cost savings if laminate flooring p gincome product line. Will discontinuing laminate flooring add $32,000 to operating income? Explain. 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 a3. 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? Print Done rom any list or enter aly number in the input fields and then click Check Answer Clear All Final Check ning