Company accountants estimate that discontinuing the industrial systems line will decrease fixed cost of goods Members of the board of directors of Security Team have received the following operating income data for the year just ended: and decrease fixed markeing and administrative expenses (Click the icon to view the operating income data.) Data Table Members of the board are surprised that the industrial systems product line is losing money. They commission a study to determine whether the company should discontinue the line roduct lines Requirement 1. Prepare an incremental analysis to show whether Security Team should discontinue the industrial syst Industrial Household Company Systems Systems Total Incremental Analysis for Discontinuation Decision Total Contribution margin lost if Industrial Systems is discontinued Sales revenue 290,000 320,000 S 610,000 Less cost of goods sold: Requirements Variable 31,000 190,000 47000 78,000 60,000 250,000 otal operating income under you learned from this comp Gross proft Less marketing and administrative expenses 1. Prepare an incremental analysis to show whether Security Team should 5 69000213,000 282,000 discontinue the industrial systems product line the contribution margin inc 2. Prepare contribution margin income statements to show Security Team's total 69,000 39,000 Variable 75,000 144,000 64,000 operating income under the two alternatives: (a) with the industrial systems line and (b) wthout the line. Compare the difference between the two alternatives income numbers to your answer to Requirement 1. What have you learned from this comparison? 25,000 next question 39000)11300074,000 Operating income (loss)