mework: Chapter 8 Homework Save are: 0 of 1 pt 3 of 8 (1 complete) HW Score: 10.58%, 0.85 of 8 ... -23A (similar to) Question Help managers of Georgia Flooring are alarmed by their operating losses. They are considering dropping the laminate ring product line. Company accountants have prepared the following analysis to help make this decision: (Click the icon to view the analysis.) tal fixed costs will not change if the company stops selling laminate flooring. ad the requirements equirement 1. Prepare an incremental analysis to show whether Georgia Flooring should discontinue the laminate oring product line. Will discontinuing laminate flooring add $30,000 to operating income? Explain. (Enter a "o" in an out 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 ontribution margin lost if laminate flooring product line is dropped ess: Fixed cost savings if laminate flooring product line is dropped Eperating income it laminate flooring is dropped Choose from any list or enter any number in the input fields and then click Check Answer. parts Clear All remaining Check Answer 12:27 AM 10/26/2020 anagers of Georgia Flooring are alarmed by their operating losses. They are considering dropping the laminate product line. Company accountants have prepared the following analysis to help make this decision: lick the icon to view the analysis xed costs will not change if the company stops selling laminate flooring, he requirements. rement 1. Prepare an incremental analysis to show whether Georgia Flooring should discontinue the laminate ng product line. Will discontinuing laminate flooring add $30,000 to operating income? Explain. (Enter a "0" in an 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 ribution margin lost if laminate flooring product line is dropped - X Data Table Georgia Flooring Product Line Contribution Margin Income Statement For the Year Product lines Wood flooring Laminate flooring Company Total Sales revenue $ 302,000 $ 124,000 $ 426,000 150,000 82,000 232,000 Less: Variable expenses Contribution margin $ 152,000 $ 42,000 $ 194,000 Less fixed expenses: Manufacturing 78,000 53,000 131,000 58,000 19,000 77,000 Marketing and administrative $ 16,000 $ (30,000) $ (14,000) Operating income (loss) 7005 pat ren Print Done 12:28 AM 10/26/2020 managers of Georgia Flooring are alarmed by their operating losses. They are considering dropping the laminate oring product line. Company accountants have prepared the following analysis to help make this decision: (Click the icon to view the analysis.) al fixed costs will not change if the company stops selling laminate flooring, ad the requirements quirement 1. Prepare an incremental analysis to show whether Georgia Flooring should discontinue the laminate coring product line. Will discontinuing laminate flooring add $30,000 to operating income? Explain. (Enter a "O" in an ut box if there ip no expected change as a result of discontinuing the laminate flooring product in this scenario.) Incremental Analysis for Discontinuation Decision Total ontribution margin lost if laminate flooring product line is dropped Requirements 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? Print Done Choose from any list or enter any number in the input fields and then click Check Answer. parts remaining Clear All Check Answer Do 12:28 AM 10/26/2020
