please answer all 3 questions

Top managers of Alaska 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: ell (Click the icon to view the analysis.) Total fixed costs ill not change if the company stops selling laminate flooring. Read the requirements. Requirement 1. Prepare an incremental analysis to show whether Alaska Flooring should discontinue the laminate flooring product line. Will discontinuing laminate flooring add $32,000 to operating income? Explain. (Enter a "0" in ar of discontinuing the laminate flooring product in this scenarlo.) Incremental Analysis for Discontinuation Decision Total Data Table Contribution margin lost if laminate flooring product line is dropped Less: Fixed cost savings if laminate flooring product line is dropped Operating income if laminate flooring is dropped Alaska Flooring Product LIne Contribution Margin Income Statement For the Year 1 Requirements Product lines Wood flooring Laminate flooring Company Total Sales revenue Less: Variable expenses Contribution margin Less fixed expenses: 301,000 S 120,000 $ 84,000 421,000 237,000 1. Prepare an incremental analysis to show whether Alaska Flooring should discontinue the laninate flooring product line. Will discontinuing laminate flooring add $32,000 to operating income? Explain. 153.000 2. Assume that the company can avoid $35,000 of fixed expenses by discontinuing the laminate flooring 148,000S 36,000 $ 184,000 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? 75,000 59,000 14,000 S 61,000 7,000 (32,000) S 136,000 66,000 (18.000) Marketing and administrative Operating income (loss) PrintDone PrintDone