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Requirement 3. Now, assume that all of the fixed costs assigned to laminate flooring are direct fxed costs and can be avoided i the compay
Requirement 3. Now, assume that all of the fixed costs assigned to laminate flooring are direct fxed costs and can be avoided i the compay stops seling laminate fooring. However, marketing has condluted that wood foong sales wold be adversely afected by discontinuing the lanirale forrg ireretalers want to buy both tom the same suppler) Wod foonng pouction ard ges would decine 10% what should the company do? Prepare an incremental analysis (Enter a "U" in an input box if there is no expected change as a result of discontinuing the laminate looring ine in this scenario Incremental Analysis for Discontinuation Decision Total s 44,000 30600 Laminate nooring contre ution margin lost aminan foring proact ine a dopped Wood flooring contribution margin lost if laminate flooring product line is dropped Less Fixed ost savings larnirate fooring product ine is doped Operating income gained aminate fooing is dropped
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