Question Hep Top managers of Georgia Flooning are alarmiod by their operatng losses They are considsing dhoppng the laminate fooring product line Company accountants harve prepared the following analysis to help make ths otal fxed couts will not change the company stope seling aminate fooring Read the requrements fooning add S18000 to operaing income? Explan incremestal Analysis for Discontisuation Deson ess Fixed cosaii perating ncome fooig product ine e Flooring ProductL e Contribution Margin Income Statement For the Year Product ln Wood Blooing Lominate fooring Company Te 305.000 57 000 130000 435 000 sumth the company can vo $22.000 of sed xpenses by discontinung the laminate foorn 243 148 000 4000 92 000 analysis to shoe whether the company should stop selling lamnate a foong Now assume at aofthed costs assigned to amnate fooning are direct foed costs and can be 7 000 3 000 Requirements Question Help product ine. Company accountants have prepared the 1. Prepare an incremental analysis to show whether Georgia Flooring should discontinue the laminate flooring 2. Assume that the company can avoid $22,000 of fixed expenses by discontinuing the laminate flooring 3. Now, assume that all of the fixed costs assigned to laminate flooring are direct fixed costs and can be product line. Will discontinuing laminate flooring add $18,000 to operating income? Explain 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 larminate fooring product line. Wil discontinuing laminate flooring add S$18,000 t avoided if the company stops seling laminate flooring However, marketing has concluded that wood flooring flooring product in this scenario.) sales would be adversely affected by discontinuing the laminate fooring line (retalers want to buy both trom the same supplier) wood mooring production and sales would decine 10% what should the company do? Print DoneData Table Georgia Flooring Product Line Contribution Margin Income Statement For the Year Product lines Wood flooring Laminate flooring Company Total Sales revenue Less: Variable expenses Contribution margin Less fixed expenses 305,000 157,000 S 148,000 30,000 86,000 435,000 243,000 92,000 44,000 Manufacturing 77,000 54,000 53,000 9,000 (18,000) S 130,00 63,000 hoose from any list or enter any number in the input fields and then clic Marketing and adminstrative Operating income (loss) 17,000 S (1,000) parts iemaining 45 of 8 (5 complete) HW Score: 48%,48 of 100 pts E8-23A (similar to) Question Help Top managers of Georgia Floring are alarmed by their operating losces. They are coneideng dropping the laminate flooring product line Company accountants have prepared the ollowing analysis to help make this decision: B(Click the icon to view the analyss ) otal fixed costs will not change the company stops selling laminate flooring Read the tecutremetS Requirement 1. Prepare an incremental analysis to show whether Georgia Flooring should discontinue the laminate flooring product ine Will discontinuing laminate fooring add $1 Expilain. (Emter a "o in an inpat box if there is no expected change as a resut of diccontinuing the laminate fooring product in this scenarie ) Incremental Analysis for Discoetinuation Decision Total Contritulon margin lost lamnate flooring product line is deopped Less: Fixed cost savings if laminate Booring product ine is droppe Operating income r laminale fooring is dropped
