ACC 206-002 Spring 2020 10:30 am to 12:00 pm (IDAP) Riley Cabanero & | 05/11/20 8:25 AM Homework: Chapter 25 Homework Save Score: 0 of 1 pt 2 of 3 (1 complete) HW Score: 27.78%, 0.83 of 3 pts P25-23A (similar to) Questiorbelp Members of the board of directors of Security First 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 $84,000 and decrease forced selling and administrative expenses by $10,000. Read the requirements Requirement 1. Prepare a differential analysis to show whether Security First should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.) in operating income Choose from any list or enter any number in the input fields and then click Check Answer Check Answer Clear All parts remaining HW Score: 27.78%, 0.83 of 3 Question Help * Data Table ilar tel of dire view the are su countan ses by S er the company should drop ixed selling and For the Year Ended May 31, 2018 Product Line Industrial Household Systems Systems Total 340,000 $ 360,000 $ 700,000 are a di ofits.) heses or a minus sign to Net Sales Revenue Cost of Goods Sold: Variable Fixed 39,000 220,000 259,000 81,000 48,000 68,000 116,000 244,000 87,000 288,000 375,000 325,000 in op Total Cost of Goods Sold Gross Profit Selling and Administrative Expenses Variable Fixed 63,000 45,000 108,000 (27,000) $ 76,000 139,000 28,000 73,000 104,000 212,000 140,000 $ 113,000 Total Selling and Administrative Expenses Operating Income (Loss) t or ente Print Done Check Answer S PIEL HW Score: 27.78 ar to) of directors of Security First have received the following operating income data for the year ended May 31, 2018: iew the operating income data.) are surprised that the industrial systems product line is not profitable. They commission a study to determine whether the com untants estimate that dropping industrial systems will decrease fixed cost of goods sold by $84,000 and decrease fixed sellir es by $10,000. eses or i Requirements ofits.) Prepare a differential analysis to show whether Security First should drop the industrial systems product line. Prepare contribution margin income statements to show Security First'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? ing Print Done