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i Data Table Swing analysis to help make this decision - X ny stops selling laminate flooring lysis to show whether Carolina A B D
i Data Table Swing analysis to help make this decision - X ny stops selling laminate flooring lysis to show whether Carolina A B D o to operating income? Explain erating income to 1 2 Carolina Flooring Product Line Contribution Margin Income Statement For the Year 3 minate flooring would add $30,00 4 Product lines ed expenses allocated to laminate flooring 5 ing product line) Prepare an incremental analysis to show whether the can avoid $34,000 of fixed expen ng (Enter a "0" in an input field it 9 $34,000 of fixed expenses, will 6 Sales revenue Laminate Wood flooring flooring Company Total $ 308 000 $ 120 000 $ 428 000 157 000 84,000 241,000 7. Less Vanable expenses 8. Contribution margin $ 151,000 $ 36 000 $ 187,000 9 Less fixed expenses e fixed costs assigned to laminate ing line (retailers want to buy both arketing has concluded that wood flooring sales would be adversely do? 10 Manufacturing 70 000 54,000 59,000 7.000 129.000 61,000 0 in an input field if there is no ex 11 Marketing and administrative $ 27000 S (30,000) (3,000) ng all fixed expenses, will cause of 12 Operating income (loss) Print Done er in the input fields and then co Ton managers of Carolina 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 dechon Click the icon to view the analysis) Total found costs will not change if the company stops selling laminate flooring Read the requirements Requirement 1. Prepare an incremental analysis to show whether Carolina Flooring should discontinue the lammate flooring product line. Wil discontinuing laminate Mooring nad 530,000 to operating income Explon Discontinuing laminate flooring will is operating income to Decision Ils to conclude that dropping laminate flooring would add $30,000 to operating comes the company discontinues the formate flooring productie cur fixed expenses alocattor laminate flooring Requirement 2. Assume that the company can avoid $34.000 of fixed expenses by discontinuing the laminate foaining product in these costs or direct foed costs of the laminate flooring product ine) Prepare an incremental analysis to show whither the company should stop selling laminate flooring (Ertura" inan input field of them is no expected change as a result of discontinuing the laminate flooring in this scenano) Descontinuing late Mooring and avoiding 534,000 of fixed expenses, will cause operating come to Decision Requirement 3. Now, assume that all of the fixed costs and to laminate flooring are direct fixed costs and can be avoided at the company stops selling laminate Flooringowever, marketing has concluded that wood foonges would be adversely affected by discontinuing the laminate flooring in retailers want to buy both from the same supplier) Woodfooring production and sales would decine 10% What should the company do Prepare an incremental analysis Intera'' in an mput field there is no expected changes result of discontinuing the natioaning in in the scene Discontinuing laminate flooring and avoiding all food expenses, will cause operating income to Decision Choose from any list or enter any number in the input fields and then continue to the next question M
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