Top managers of New York Flooring are alarmed by their operating losses. They are considering dropping the laminate flooring product line. Company accountants have procured the following analysis this Click the icon to view the analysis) Total food costs will not change if the company stops selling laminate flooring Read the requirements Requirements. Prepare an incremental analysis to show whether New York Flooring should discontinue the annate flooring product ine wa discontinuing tamirate fooring add $28.000 to patating income? Explain (Enter a *o" in an input box if there is no expected change as a result of discontinuing the laminate flooring product in this scenario Incremental Analysis for Discontinuation Decision Total Contribution margin lost if laminate flooring product line is dropped Less: Fixed cost savings i laminate flooring product line is dropped Operating income hamirate flooring is dropped Choose from any list or enterary number in the input fields and then click Check Answer show whether New York Flooring should discontinue the laminate flooring product line. Will discontinuing is no expected change as a result of discontinuing the laminate flooring product in this scenario.) i Data Table New York Flooring Product Line Contribution Margin Income Statement For the Year Product lines Sales revenue Wood flooring Laminate flooring Company Total $ 302,000 $ 120.000 $ 422,000 158,000 88,000 246,000 144,000 $ 32.000 $ 176,000 Less: Variable expenses Contribution margin Less fixed expenses: Manufacturing Marketing and administrative 73,000 51,000 53,000 7.000 126,000 58,000 $ 20,000 $ (28,000) $ (8,000) Operating income (loss) Print Done analysis to show whether New York Flooring should discontinue the laminate flooring product line. Will discontinuing lam box if there is no expected change as a result of discontinuing the laminate flooring product in this scenario.) A Requirements 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 aber in the input fields and then click Check Answer. S8-9 (similar to) Question Help Storage Solutions produces plastic storage bins for household storage needs. The company makes two sizes of bine Large (50 gallon) and Regular (35 gallon), Domand for the product is so high that the company can sell as many of each sicre as it can produce. The same machinery is used to produce both the machinery is available for only 3.400 hours per period. The company can produce Large bins every hour compared to 15 Regular bine in the same amount of time Fixed expenses amount to $106.000 per period. Salon prices and variable costs are as follows: Click the con to view the cost 1. Which product should Storage Solutions emphasize? Why? 2. To maximize prots, how many of each size bin should the company produce? 3. Given this product mix, what will the company's operating income be? 1. Which product should Storage Solutions emphasize? why? Complete the product mix analysis to determine which product Storage Solutions should emphasize Storage Solutions Product Mix Analysis Regular Largo Sales o per unit Coton margin porn Un Der machine hour Coton marga per machine hour Enter any number in the edit lids and then click Check Answer All Check Answer income be? ct Stord Data Table gular Regular Large $ 8.00 $ 10.00 Sales price per unit Variable cost per unit $ 3.50 $ 4.20 Print Done