Top managers of Georgia Flooring are alarmed by the operating losses. They are considering dropping the Laminoin fooring product ine. Company accountants have prepared the following analysis to help make this Click the icon to view the analysis Total fed cons will not change the company stops seling laminate flooring Read the Requirement 1. Prepare an incremental analysis to show whethe Georgia Foring should continue the litering product in Wil discontinuing Laminate floor as 522,000 to operating income? Expain Entora Vinnufed if there is no expected trange as a result of discontinuing the laminate fooring product in this Incremorial Analysis for Discontinuation Decision Total Conirbution margnottamine tooning product line is dropped Low cost savings laminate flooring protein drool Operlinge laminate flooring is dropped X Data Table A B D N 3 1 Georgia Flooring Product Line Contribution Margin Income Statement For the Year 4 Product lines Laminate 5 Wood flooring flooring Company Total 6 Sales revenue $ 300,000 $ 126,000 $ 426,000 7 Less: Variable expenses 158,000 82,000 240,000 8 Contribution margin 142,000 $ 44,000 $ 186,000 $ 9 Less fixed expenses: 1. Prepare an incremental analysis to show whether Georgia Flooring should discontinue the laminate flooring product line. Will discontinuing laminate flooring add $22,000 to operating income? Explain. 2. Assume that the company can avoid $23,000 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