Top manager of Oo oorgewed by repeatego They are coming out for production pred the following is to help make this decision om Click the icon to view the analysis) Yol teed cows will rechange the company store telling late foorng Read the requirements neque Power on crown 100 32.000 to operating incomo? Explain (Entot art feiere i no espected the of congo Sono) Incremental Analysis for Discontinuation Decision Total Contribution margin toomine toring product in moped Lot Fired cost saving me fooning product in cropped Operating income Decision It is to conclude that dropping laminate flooring would add $32,000 to operating income the company decortes e lumits footing pool iner fund expenses allocated to laminate flooring Requirement 2. Assume that the company can avoid $36.000 of fived expenses by discontinuing thetaminate flooring product in these consisted costs of laminate flooring product line). Prepare an incremental analysis to show whether the company should stop selling laminate foon (Enter a routes no expected changes arout of conting the laminate flooring in this scenario) Incremental Analysis for Discontinuation Decision Total Contribution margin fost laminate flooring product lines dropped Les Find oot savings i laminate flooring product line dropped Operating income e caminate flooring & dropped Decision because, assuming $36,000 at foued expenses atributable to the laminate flooring product line can be avoided, the loss of contribution margin the feed cost savings Requirement. Now, assume that of the feed costs assigned to laminate flooring we directed costs and can be wed the companying flooring. However, marketing has concluded that wood flooring sales would be adversely affected by continuing the laminate flooring in retailers want to buy both from the same supplier). Wood fooring production and sales would dedine 10%. What should the company do? Prepare an incrementa anys. (Entero* nan input there are expected change of cong the laminate flooring in scenario) Incremental Analysis for Discontinuation Decision Total Laminate for contribution margin fost amatooring product is dropped Wood Hooning contribution margin ostaminate flooring producties dropped Less Fixed cost savings a fooring product in a dropped Operating incom aminate tooning is dropped Decision: because, assuming that at fed costs signed to the late flooring product line can be vided but that wood flooring production and sales would decline 10%, the loss of contribution margin the cost savings Choose from any list or enter any number in the input fields and to continue to the non onary if the company stops selling laminate flooring remuntar anarys To Now wenner mo roong arou Orcorrono e artit noong producten. WICO 7e? Explain. (Enter a "0" in an input field If there is no expected change as a result of discontinuing the limite is for Discontinuation Decision Total ate flooring product line is dropped at Badan Deductie le donned Data Table A B 1 2 Ohio Flooring Product Line Contribution Margin Income Statement For the Year 3 4 5 $ Product lines Wood Laminate flooring flooring Company Total 306.000 $ 122,000 $ 428,000 158,000 82,000 240,000 148,000 $ 40,000 $ 188,000 6 Sales revenue . 7 Less: Variable expenses 8 Contribution margin $ 9 Less fixed expenses: 10 Manufacturing 11 Marketing and administrative $ 12 Operating income (loss) 55,000 133,000 78,000 53,000 70,000 17,000 (32,000) $ 17,000 $ (15,000) Print Done TOLI alysis for DiscontiTOTT DUCISTOM rgin lost if laminate flooring product line is dropped lost if laminate flooring product line is dropped te flooring product line is dropped if laminate flooring is dropped Top manager of Oo oorgewed by repeatego They are coming out for production pred the following is to help make this decision om Click the icon to view the analysis) Yol teed cows will rechange the company store telling late foorng Read the requirements neque Power on crown 100 32.000 to operating incomo? Explain (Entot art feiere i no espected the of congo Sono) Incremental Analysis for Discontinuation Decision Total Contribution margin toomine toring product in moped Lot Fired cost saving me fooning product in cropped Operating income Decision It is to conclude that dropping laminate flooring would add $32,000 to operating income the company decortes e lumits footing pool iner fund expenses allocated to laminate flooring Requirement 2. Assume that the company can avoid $36.000 of fived expenses by discontinuing thetaminate flooring product in these consisted costs of laminate flooring product line). Prepare an incremental analysis to show whether the company should stop selling laminate foon (Enter a routes no expected changes arout of conting the laminate flooring in this scenario) Incremental Analysis for Discontinuation Decision Total Contribution margin fost laminate flooring product lines dropped Les Find oot savings i laminate flooring product line dropped Operating income e caminate flooring & dropped Decision because, assuming $36,000 at foued expenses atributable to the laminate flooring product line can be avoided, the loss of contribution margin the feed cost savings Requirement. Now, assume that of the feed costs assigned to laminate flooring we directed costs and can be wed the companying flooring. However, marketing has concluded that wood flooring sales would be adversely affected by continuing the laminate flooring in retailers want to buy both from the same supplier). Wood fooring production and sales would dedine 10%. What should the company do? Prepare an incrementa anys. (Entero* nan input there are expected change of cong the laminate flooring in scenario) Incremental Analysis for Discontinuation Decision Total Laminate for contribution margin fost amatooring product is dropped Wood Hooning contribution margin ostaminate flooring producties dropped Less Fixed cost savings a fooring product in a dropped Operating incom aminate tooning is dropped Decision: because, assuming that at fed costs signed to the late flooring product line can be vided but that wood flooring production and sales would decline 10%, the loss of contribution margin the cost savings Choose from any list or enter any number in the input fields and to continue to the non onary if the company stops selling laminate flooring remuntar anarys To Now wenner mo roong arou Orcorrono e artit noong producten. WICO 7e? Explain. (Enter a "0" in an input field If there is no expected change as a result of discontinuing the limite is for Discontinuation Decision Total ate flooring product line is dropped at Badan Deductie le donned Data Table A B 1 2 Ohio Flooring Product Line Contribution Margin Income Statement For the Year 3 4 5 $ Product lines Wood Laminate flooring flooring Company Total 306.000 $ 122,000 $ 428,000 158,000 82,000 240,000 148,000 $ 40,000 $ 188,000 6 Sales revenue . 7 Less: Variable expenses 8 Contribution margin $ 9 Less fixed expenses: 10 Manufacturing 11 Marketing and administrative $ 12 Operating income (loss) 55,000 133,000 78,000 53,000 70,000 17,000 (32,000) $ 17,000 $ (15,000) Print Done TOLI alysis for DiscontiTOTT DUCISTOM rgin lost if laminate flooring product line is dropped lost if laminate flooring product line is dropped te flooring product line is dropped if laminate flooring is dropped