Company accountants estimate the discontinuing the industrystems in wil decrease feed cost of goods sold by $84.000 and decreased marketing and administrative expenses by $15,000. Members of the board of directors of Adobe Securly have received the following operating income data for the year anded Co the icon to view the operating income dana) Members of the board are surprised the industr i es product line is losing money. They commission a study to determine whether the company should discontinue the line Read the remot Requirement 1. Prepare an incremental analysis to show whether Adobe Security should discontinue the industrial systems product line Incremental Analysis for Discontinuation Decision Contribution margin o f Industrial Systems is discontinued Less: Fored cost savings of Industrial Systems is discontinued Operating income if industrial Systems is discontinued Requirement 2. Prepare contribution margin income statements to show Adobe Security's total operating income under the two alteratives: (a) with the indu s trine and (b) without there. Compare the difference between the two alternatives'income numbers to your answer to Requirements. What have you learned from this comparison? Begin by preparing the statements with and thout the industrial stoms in the prepare the contribution margin income statement showing the decrease if the industry line is discontinued Use parentheses or minus sgn foran Adobe Security Total Analysis of Discontinuing a Product Line Totals With Industrial Systems Total Without Industrial Systems Sales revenge Variable expenses Cost of goods sold Choose from any list or enter any number in the input fields and then continue to the next question Data 584000 and Read the more Members of the board a nd productores moneyThey como as to Product Line Co on Marcome Statement For the Year nda Sales revenue Variable expens Cost of goods sold Marketing and administrative experte Productes Industrial Household Systems Systems 300.000 300.000 5 Company Total 00.000 $ Loofd od Total variable pense Variable 4.000 42.000 64,000 75.000 334 000 Contbuton margin Fixed expenses Cost of goods sold Marketing and administrative expens 14.000) 284 000 $ 280,000 Gross proft Les marketing and administrative expenses Total fed expenses 17.000 20,000 187,000 $ 14.000 61.000 75,000 Operating income foss) 5 (112.000) $ Operating income What have you learned from this comparison? The operating income dice cated on the o n e of conting productie e preceden Done This demonstrates the incrementa r i t y was the longer approach in Requirement com e income under the wees Choose from any sorterary and come to t on