Top managers of Alaska Flooring are alarmed by their operating losses. They are considering Kto help...

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Top managers of Alaska Flooring are alarmed by their operating losses. They are considering Kto help make this decision (Click the icon to view the analysis) Total fixed costs will not change if the company stops selling laminate flooring Read the requirements Requirement 1. Prepare an incremental analysis to show whether Alaska Flooring should dis income? Explain. (Enter a "0" in an input field if there is no expected change as a result of dis 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 flaminate flooring is dropped Total Requirements 1. Prepare an incremental analysis to show whether Alaska Flooring should discontinue the laminate flooring product line. Will discontinuing laminate flooring add $31,000 to operating income? Explain 2. Assume that the company can avoid $34,000 of fixed expenses by discontinuing the laminate flooring product line (these costs are direct fised costs of the laminate flooring product line). Prepare an incremental analysis to show whether the company should stop seling laminate flooring 3. Now, assume that all of the faed 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 decine 10%. What should the company do Data table D 1 2 3. 4 S Alaska Flooring Product Line Contribution Margin Income Statement For the Year Product lines Wood flooring Laminate flooring Company Total 6 Sales revenue 300,000 $ 120,000 $ 420,000 7 Less: Variable expenses 155.000 80.000 235,000 8 Contribution margin $ 145,000 $ 40,000 $ 185,000 9 Less fixed expenses 10 Manufacturing 75,000 62,000 137,000 11 Marketing and administrative 50,000 9,000 67,000 - X 12 Operating income (loss) 12,000 $ (21,000) (0.000) Print Done Clear all Check answer Top managers of Alaska Flooring are alarmed by their operating losses. They are considering Kto help make this decision (Click the icon to view the analysis) Total fixed costs will not change if the company stops selling laminate flooring Read the requirements Requirement 1. Prepare an incremental analysis to show whether Alaska Flooring should dis income? Explain. (Enter a "0" in an input field if there is no expected change as a result of dis 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 flaminate flooring is dropped Total Requirements 1. Prepare an incremental analysis to show whether Alaska Flooring should discontinue the laminate flooring product line. Will discontinuing laminate flooring add $31,000 to operating income? Explain 2. Assume that the company can avoid $34,000 of fixed expenses by discontinuing the laminate flooring product line (these costs are direct fised costs of the laminate flooring product line). Prepare an incremental analysis to show whether the company should stop seling laminate flooring 3. Now, assume that all of the faed 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 decine 10%. What should the company do Data table D 1 2 3. 4 S Alaska Flooring Product Line Contribution Margin Income Statement For the Year Product lines Wood flooring Laminate flooring Company Total 6 Sales revenue 300,000 $ 120,000 $ 420,000 7 Less: Variable expenses 155.000 80.000 235,000 8 Contribution margin $ 145,000 $ 40,000 $ 185,000 9 Less fixed expenses 10 Manufacturing 75,000 62,000 137,000 11 Marketing and administrative 50,000 9,000 67,000 - X 12 Operating income (loss) 12,000 $ (21,000) (0.000) Print Done Clear all Check answer