2052 ACC-102-001 Gordon Parker Lipton & | 04/16/20 6:10 PM Homework: Chapter 25 Homework Save 6 of 7 (5 complete) HW Score: 44.38%, 44.38 of 100 pts Score: 0 of 20 pts P25-23A (similar to) Question Help Members of the board of directors of Security Alarms have received the following operating income data for the year ended May 31, 2018: (Click the icon to view the operating income data.) Members of the board are surprised that the industrial systems product line is not profitable. They commission a study to determine whether the company should drop the line. Company accountants estimate that dropping industrial systems will decrease fixed cost of goods sold by $83,000 and decrease fixed selling and administrative expenses by $14,000. Data Table Read the requirements. Requirement 1. Prepare a differential analysis to show whether Security Alarms should drop the industrial systems product line. Security Alarms Income Statement For the Year Ended May 31, 2018 Product Line in operating income Industrial Household Systems Systems Total $ 350,000 $ 360,000 $ 710,000 Net Sales Revenue Cost of Goods Sold: Variable 34,000 230,000 Fixed 49,000 64,000 113,000 83,000 294,000 377,000 264,000 Total Cost of Goods Sold Gross Profit Selling and Administrative Expenses: 86,000 247,000 333,000 Variable 62,000 43,000 Fixed 76,000 138,000 28,000 71,000 104,000 209,000 143,000 $ 124,000 Total Selling and Administrative Expenses 105,000 (19,000) $ $ Operating Income (Loss) Choose from any list or enter any number in the input fields and then click Check Answer. Print Done Done 2 parts 2 remaining Clear All Homework: Chapter 25 Homework Save Score: 0 of 20 pts 6 of 7 (5 complete) HW Score: 44.38%, 44.38 of 100 pts P25-23A (similar to) Question Help Members of the board of directors of Security Alarms have received the following operating income data for the year ended May 31, 2018: (Click the icon to view the operating income data.) Members of the board are surprised that the industrial systems product line is not profitable. They commission a study to determine whether the company should drop the line. Company accountants estimate that dropping industrial systems will decrease fixed cost of goods sold by $83,000 and decrease fixed selling and administrative expenses by $14,000. Read the requirements. Requirement 1. Prepare a differential analysis to show whether Security Alarms should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.) 1 Requirements in operating income 1. Prepare a differential analysis to show whether Security Alarms should drop the industrial systems product line. 2. Prepare contribution margin income statements to show Security Alarm's total operating income under the two alternatives: (a) with the industrial systems line and (b) without the line. Compare the difference between the two alternatives' income numbers to your answer to Requirement 1. 3. What have you learned from the comparison in Requirement 2? Print Done Choose from any list or enter any number in the input fields and then click Check Answer. parts 2 remaining Clear All Check