Question: please help! analysis to help make this decisian: (Cick the icon to view the analyis.) Total fored costs wil not change if the company slops


analysis to help make this decisian: (Cick the icon to view the analyis.) Total fored costs wil not change if the company slops selling laminate fooring Read the reckitements Optrating income A laminste footing is dropped Decien It is to conclude that dropping laminase flooring would add $26,060 to operating income, It the compatry discontinues the laminate flooring product line, it allocoled to lantinate flooring discontining the laminate flooring in this scenario.) Requirements 1. Prepare an incremental analysis to show whether Georgia Flooring should discontinue the laminate flooring product line. Will discontinuing laminate flooring add $26,000 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
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