Top managers of Texas 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 Texas Flooring should discontinue the laminate flooring product line Will discontinuing laminate flooring add $36,000 to operating income? Explain. (Enter a "0" in an input field if there is no expected change as a result of discontinuing the laminate flooring product in this scenario. 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 incorne if laminate flooring is dropped Total B - X Data table A B C D Texas Flooring Product Line Contribution Margin Income Statement For the Year Product lines Wood Laminate flooring flooring Company Total 6 Sales revenue $ 308,000 $ 120,000 $ 428,000 7 Less: Variable expenses 157,000 76,000 233,000 8 Contribution margin $ 151,000 S 44,000 $ 195,000 9 Less fixed expenses: 10 Manufacturing 77,000 61,000 138,000 Marketing and 11 administrative 53,000 19,000 72,000 12 Operating income (loss) $ 21,000 S (36,000) $ (15,000) Print Done