Question Help E8-23A (similar to) Top managers of New York Flooring wewed by the ring Click the icon to view the analy ) Total bed costs will not change the company spelling m e They are considering dropping the laminate flooring product line Company w a s prepared the town ways to make this decision flooring will discontinuing laminate foong 24.000 cering incom p a r ainorout Requirement Prepare an incre a se show whether New York Flooring should discontinue the laminate flooring product bexthera p ie change of coing the laminate flooring product in this scenario) Thermal Analysis for Discon o Decision Total Corbution for product is rood 45,000 La Fedotov o g productie is dropped nome $ 48000 aminate flooring is dropped O Decisione Dat i n g product line to conclude that resping oog would add 5.24.000 income is income e the company discontinue toring product in n oured p wi o w i atoring s to show Requirements that the company can 2000 of the expenses by discontinuing the mine fooring product in the costs are directed costs of the m e aning product line. Prepare an increment whether the company should we g o ing on an input bothere is no expected changes of conting the org a ne Incremental Analysis for Dic t ion Decision Cantongi e ogroduct line is rood Les cost og product is reed Operating income ongi reped Choose from any lat or enter any number in the hout nolds and then click Check Arrower. Check Arown 3 CA Total 46,000 $ ICIUNONI A SISTOF UIScondhaton Lecision 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 lost $ 46,000 Decision: Do not drop laminate flooring product line. It is incorrect to conclude that dropping laminate flooring would add $24,000 to operating income. If the compan Requirement 2. Assume that the company can avoid $29,000 of fixed expenses by discontinuing the laminate flo whether the company should stop selling laminate flooring. (Enter a "0" in an input box if there is no expected cha Total Incremental Analysis for Discontinuation Decision 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. 3 pertaining 3 parts remaining continue the laminate flooring product line. Will discontinuing laminate flooring add $24,000 to operating income? Explain. (Enter a Vina scenario.) ne. If the company discontinues the laminate flooring product line, it will still incur fixed expenses allocated to laminate flooring g the laminate flooring product line (these costs are direct fixed costs of the laminate flooring product line). Prepare an incremental analys no expected change as a result of discontinuing the laminate flooring in this scenario.) Check Answer Clear All IL VO Prepared und Tollowing laminate flooring Data Table Hd $24,000 to whether N ng the la ision ropped dropped ng is drop New York Flooring Product Line Contribution Margin Income Statement For the Year Product lines Wood flooring Laminate flooring Company Total Sales revenue 304,000 $ 124,000 $ 428,000 155,000 78,000 233,000 Less: Variable expenses Contribution margin 149,000 $ 46,000 $ 195,000 Less fixed expenses 79,000 53,000 132,000 Manufacturing 50,000 17,000 67,000 Marketing and administrative 20,000 $ (24,000) $ (4,000) Operating income (loss) ncur fixed exp would add ate flooring nario.) 000 of fixe (Enter a cision Propped dropped pring is dry Print Done upuluully Wuu. Iley ale wierny uropping the laminate flooring product line. Company accountants have prepared the following a ing laminate flooring. whether New York Flooring should discontinue the laminate flooring product line. Will discontinuing laminate flooring add $24,000 to og nuing indet in the canald i Requirements s dr 15 orin 1. Prepare an incremental analysis to show whether New York Flooring should discontinue the laminate flooring product line. Will discontinuing laminate flooring add $24,000 to operating income? Explain. 2. Assume that the company can avoid $29,000 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 Mooning 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? d expe ring pro Dec Print Done is de looring is dropped Decision: Do not drop laminate flooring product line. It is incorrect to conclude that dropping laminate flooring would add $24,000 to operating in Requirement 2. Assume that the company can avoid $29,000 of fixed expenses by disconti whether the company should stop selling laminate flooring. (Enter a "0" in an input box if the 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 Answ 3 parts remaining