Question: Please help me solve requirements 1-3. Really need the help! Top managers of Texas Flooring are alarmed by their operating losses. They are considering dropping


Please help me solve requirements 1-3. Really need the help!
Top managers of Texas Flooring are alarmed by their operating losses. They are considering dropping the laminate flooring product line. Company 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 discont 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 th Requirements 1. Prepare an incremental analysis to show whether Texas Flooring should discontinue the laminate flooring product line. Will discontinuing laminate flooring add $24,000 to operating income? Explain. 2. Assume that the company can avoid $25,000 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? Data table
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