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please do all requirements Question Help Top managers of Maine Flooring are alarmed by their operating losses. They are considering dropping the laminate product line.
please do all requirements
Question Help Top managers of Maine 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: (Click the icon to view the analysis.) Total fixed costs will not change if the company stops selling laminate flooring. Read the fequirements Requirement 1. Prepare an incremental analysis to show whether Maine Flooring should discontinue the laminate fl- product line. Will discontinuing laminate flooring add $25,000 to operating income? Explain. (Enter a "0" in an input fi- 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 if laminate flooring is dropped Choose from any list or enter any number in the input fields and then click Check Answer. Check Answer Question Help i Data Table bo B D 1 Maine Flooring 2 Product Line Contribution Margin Income Statement 3 For the Year 4 Product lines Laminate 5 Wood flooring flooring Company Total 6 Sales revenue $ 306,000 $ 132,000 $ 438.000 7 Less: Variable expenses 154,000 78,000 232,000 8 Contribution margin $ 152,000 $ 54,000 $ 206,000 9 Less fixed expenses: 10 Manufacturing 70,000 62,000 132,000 11 Marketing and administrative 59,000 17,000 76,000 12 Operating income (loss) $ 23,000 $ (25,000) $ (2.000) Print Done ining Clear All Check Answer g 1,061 16 8 BB do F3 FT 000 FA F2 @ TA % managers of Maine Flooring are alarmed by operaun osses. They considering dropping the laminate floc luct line. Company accountants have prepared the following analysis to help make this decision: (Click the icon to view the analysis.) I fixed costs will not change if the company stops selling laminate flooring, Requirements 1. Prepare an incremental analysis to show whether Maine Flooring should discontinue the laminate flooring product line. Will discontinuing laminate flooring add $25,000 to operating income? Explain. 2. Assume that the company can avoid $28,000 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 Clear All Check Step by Step Solution
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