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(Click the icon to view the analysis.) Total fixed costs will not change if the company stops selling laminate flooring. Read the requirements. \begin{tabular}{l} Incremental Analysis for Discontinuation Decision \\ \hline Contribution margin lost if laminate flooring product line is dropped \\ Less: Fixed cost savings if laminate flooring product line is dropped \\ Operating income \end{tabular} Decision: It is 7 to conclude that dropping laminate flooring would add $20,000 to operating income. If the company discontinues the laminate flooring product line, it 7 incur fixed expenses allocated to laminate flooring. as a result of discontinuing the laminate flooring in this scenario.) Wood flooring production and sales would decline 10%. What should the company do? Prepare an incremental analysis. (Enter a " 0 " in an input field if there is no expected change as a result of discontinuing the laminate flooring line in this scenario.) \begin{tabular}{l} Incremental Analysis for Discontinuation Decision \\ \hline Laminate flooring contribution margin lost if laminate flooring product line is dropped \\ Wood flooring contribution margin lost if laminate flooring product line is dropped \\ Less: Fixed cost savings if laminate flooring product line is dropped \\ Operating income \end{tabular} Decision: the fixed cost savings. Data table

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