Can you do all three requirements

Merribers of the board of directors of Security System 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 fixed selling and administrative expenses by $14,000. Read the requirements i Data Table Requirement 1. Prepare a differential analysis to show whether Security System should drop the industrial systems product line. (Use Security System Income Statement For the Year Ended May 31, 2018 Product Line in operating income Industrial Household Systems Systems Total 340,000 $ 360,000 $ 700,000 $ Requirements Net Sales Revenue Cost of Goods Sold: Variable 39,000 240,000 49,000 65,000 114,000 88,000 305,000 Fixed 279,000 393,000 1. Prepare a differential analysis to show whether Security System should drop the industrial systems product line 2. Prepare contribution margin Income statements to show Security System'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? 61,000 246,000 307.000 Total Cost of Goods Sold Gross Profit Selling and Administrative Expenses: Variable 69,000 45,000 74,000 25,000 143,000 70,000 Fixed 114,000 99,000 Print 213,000 Total Selling and Administrative Expenses Done $ (53,000) $ 147,000 $ 94,000 Operating Income (Loss) 2 parts remaining Clear All