E8-43B. Decide whether to discontinue a product line (Learning Objective 4) Top managers of Maine Flooring are alarmed by their operating losses. They are considering discontinuing the laminate flooring product line. Company accountants have prepared the following analysis to help make this decision: 1. Prepare an incremental analysis to show whether Maine Flooring should discontinue the laminate flooring product line. Will discontinuing the laminate flooring add $24,000 to operating income? Explain. 2. Assume that the company can avoid $27,000 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