Data Table hdustrial systems line will decrease fixed cost of goods sol rative expenses by $12,000 Members of the board of directors of Safety Systems haver year just ended: (Click the icon to view the operating income data.) Members of the board are surprised that the industrial syste study to determine whether the company should discontinue TrouUCE LIC COTT DULUI UT COMIC JULCITICIIL 3 For the Year 4 Requirement 1. Prepare an incremental analysis to show w 6 Product lines Industrial Household Company Systems Systems Total $ 290,000 $ 380,000 S 670,000 7 Sales revenue Incremental Analysis for Discontinuation Contribution margin lost if Industrial Systems is discontinue Less: Fixed cost savings if Industrial Systems is discontinue 8 Less cost of goods sold: 9 Variable 39,000 45,000 84,000 Operating income if Industrial Sys 10 Fixed 260,000 69,000 329,000 S (9,000) $ 266,000 $ 257,000 he and (b) without the line. Compare the difference Requirement 2. Prepare contribution margin income staten between the two alternatives' income numbers to your answ Begin by preparing the statements with and without the indu minus sign for an operating loss.) 11 Gross profit 12 Less marketing and administrative expenses: 13 Variable 65,000 73,000 138,000 systems line is discontinued. (Use parentheses or a 14 Fixed 40,000 29,000 69,000 Safety Systems Total Analysis of Discontinuing a Pd 15 Operating income (loss) $ (114,000 $ 164,000 $ 50,000 Choose from any list or enter any number in the input fie Print Done Company accountants estimate that discontinuing the industrial systems line will decrease fixed cost of goods sold by 584,000 and decrease fixed marketing and administrative expenses by $12,000. Read the requirements Members of the board of directors of Safety Systems have received the following operating income data for the year just ended: (Click the icon to view the operating income data.) 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. Requirements Requirement 1. Prepare an incremental analysis to show whether sa X Incremental Analysis for Discontinuation Decision Contribution margin lost if Industrial Systems is discontinued Less: Fixed cost savings if Industrial Systems is discontinued Operating income if Industrial Systems is d Requirement 2. Prepare contribution margin income statements to s between the two alternatives' income numbers to your answer to Req Begin by preparing the statements with and without the industrial syst minus sign for an operating loss.) 1. Prepare an incremental analysis to show whether Safety Systems should discontinue the industrial systems product line 2. Prepare contribution margin income statements to show Safety Systems' 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 your answer to Requirement 1. What have you learned from this comparison? ystems line and (b) without the line. Compare the difference industrial systems line is discontinued. (Use parentheses or a Print Done Safety Systems Total Analysis of Discontinuing a Product Line Choose from any list or enter any number in the input fields and then continue to the next question. Company accountants estimate that discontinuing the industrial systems line will decrease fixed cost of goods sold by 584,000 and decrease fixed marketing and administrative expenses by $12,000. Members of the board of directors of Safety Systems have received the following operating income data for the year just ended: E: (Click the icon to view the operating income data.) 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. Read the requirements Requirement 1. Prepare an incremental analysis to show whether Safety Systems should discontinue the industrial systems product line. Incremental Analysis for Discontinuation Decision Total Contribution margin lost if Industrial Systems is discontinued Less: Fixed cost savings if Industrial Systems is discontinued Operating income if Industrial Systems is discontinued Requirement 2. Prepare contribution margin income statements to show Safety Systems' 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. What have you learned from this comparison? Begin by preparing the statements with and without the industrial systems line, then prepare the contribution margin income statement showing the decrease if the industrial systems line is discontinued. (Use parentheses or a minus sign for an operating loss.) Safety Systems Total Analysis of Discontinuing a Product Line Choose from any list or enter any number in the input fields and then continue to the next question. Members of the board of directors of Safety Systems have received the following operating income data for the year just ended: Click the icon to view the operating income data.) 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. Sales revenue Company accountants estimate that discontinuing the industrial systems line will decrease fixed cost of goods sold by $84.000 and decrease fixed marketing and administrative expenses by $12,000. Read the requirements. Variable expenses Cost of goods sold Marketing and administrative expense Total variable expenses Contribution margin Fixed expenses Cost of goods sold Marketing and administrative expense Total fixed expenses Operating income (loss) Choose from any list or enter any number in the input fields and then continue to the next question. Company accountants estimate that discontinuing the industrial systems line will decrease fixed cost of goods sold by $84,000 and decrease fixed marketing and administrative expenses by $12,000. Members of the board of directors of Safety Systems have received the following operating income data for the year just ended (Click the icon to view the operating income data.) 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. Read the requirements. Contribution margin Fixed expenses Cost of goods sold Marketing and administrative expense Total fixed expenses Operating income (loss) What have you learned from this comparison? The operating income difference calculated on the total analysis of discontinuing a product line V the expected decrease in operating income if Safety Systems discontinues the industrial systems product line, as shown in Requirement 1. This demonstrates that the incremental analysis approach in Requirement 1 yields does not equal roach in Requirement 2 that compares total operating income under the two alternatives. equals Choose from any list or enter any number in the input fields and then continue to the next question. Company accountants estimate that discontinuing the industrial systems line will decrease fixed cost of goods sold by 584,000 and decrease fixed marketing and administrative expenses by $12,000. Members of the board of directors of Safety Systems have received the following operating income data for the year just ended: (Click the icon to view the operating income data.) 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. Read the requirements. Contribution margin Fixed expenses Cost of goods sold Marketing and administrative expense Total fixed expenses Operating income (loss) What have you learned from this comparison? the expected decrease in operating income if Safety Systems discontinues the industrial systems product line, as The operating income difference calculated on the total analysis of discontinuing a product line shown in Requirement 1. This demonstrates that the incremental analysis approach in Requirement 1 yields results as the longer approach in Requirement 2 that compares total operating income under the two alternatives. Choose from any list or enter any number in the input fields and then continue different on the same