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Top managers of Maine Flooring are alarmed by their operating losses. They are considering dropping the laminate flooring product line. Company accountants have prepared the

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Top managers of Maine Flooring are alarmed by their operating losses. They are considering dropping the laminate flooring product line. Company accountants have prepared the following analysis to 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 Maine Flooring should discontinue the laminate flooring product line. Will discontinuing laminate flooring add $34,000 to operating income? Explain. (Enter a "0" in an input box if there is no expected change as a result of discontinuing the laminate flooring product in this scenario.) Maine Flooring Product Line Contribution Margin Income Statement For the Year Product lines Wood flooring Laminate flooring Company Total Sales revenue Less: Variable expenses Contribution margin Less fixed expenses: Manufacturing Operating income (loss)

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