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Top managers of Texas Floonng are slamed by their operating losses. They are cons dering dropping the laminate floonng product line. Company accountants have prepared
Top managers of Texas Floonng are slamed by their operating losses. They are cons dering dropping the laminate floonng product line. Company accountants have prepared the following analysis to help make this decision: (Click the icon to view the analysis) Total faced costs will not change if the company stops selling laminate Mooring Read the requirements Requirement 1. Prepare an incremental analysis to show whether Texas Flooring should discontinue the laminate flooring product line. Wil discontinuing laminate flooring ad: $20,000 to operating income? Explain. (Enter a "U" in an input box if there is no expected change as a result of Incremental Analysis for Discontinuation Decision Total Contribution margin lost if laminate flooring product line is dropped Less: Deed cost savings it laminate flooring product line is dropped i Data Table Operating income if laminate flooring is dropped Texas Flooring Product Line Contribution Margin Income Statement For the Year Product lines Sales revenue Wood flooring Laminate flooring Company Total $ 300,000 $ 138,000 S 436,000 156,000 81,000 239,000 $ 145,000 $ 52,000 S 197,000 $ Les Ville expert Contribution margin Less fixed expenses Manufacturing Marketing and administrative 77,000 50,000 18,000 55.000 17 000 132,000 67,000 (2.000) $ 120.000) Operating income foss) Print Done Choose from any list or enter any number in the input fields and then click Check Answer. 6 parts remaining Clear All
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