Too manager of New York Floors are turned by their operating. They are considering the faminate for product tre Company score he prepared the totowry ways to help make a deciso the moon to view the way) Totted costs will not change the company es ting minarefoong Requirement. Prepare an incrementalatywie to show whom New York Flooring would discontinue the watering product in wildecontinuing laminate fooring add $28.000 perwing income? Explain (Enter and bothere is no expected changes art of continuing the laminate for product in this como Incremental Analysis for Discontinuation Decision Contribution marginate fooring product line is dood Les Fed cost savings wat ooring product line is dropped Operating income raminate flooring is de looring. Data Table Hd $ New York Flooring Product Line Contribution Margin Income Statement For the Year Product lines Sales revenue Wood flooring Laminate flooring Company Total $ 304,000 $ 130,000 $ 434,000 154,000 88,000 242,000 $ 150,000 $ 42,000 $ 192,000 Less: Variable expenses Contribution margin Less fixed expenses: Manufacturing 71,000 54,000 57,000 13,000 (28,000) $ 128,000 67,000 Marketing and administrative $ 25,000 $ (3,000) Operating income (loss) Print Done then click Check Answer. Clear All their operating losses. They are considering dropping the laminate flooring product line. Company accountants have prepared the following s selling laminate flooring. show whether New York Flooring should discontinue the laminate flooring product line. Will discontinuing laminate flooring add $28,000 to continuing the laminate flooring product in this scenario) on Deci * Requirements line is di line is d e flooring 1. Prepare an incremental analysis to show whether New York Flooring should discontinue the laminate flooring product line. Will discontinuing laminate flooring add $28,000 to operating income? Explain. 2. Assume that the company can avoid $31,000 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 e input fields and then click Check