Data Table is the last picture
Members of the board of directors of 1.22 Security have received the following operating income data for the year just ended: m. (Cick the con to view the corredata) Members of the board we surprised that the industrial product line is losing money. They commission a study to determine whether the company should score the line Company accountants estimate that discontinuing the industrial systems ine will decrease find cost of goods sold by $79.000 and decrease fed marketing and administrative expenses by $12.000 Read the securements Requirement 1. Prepare an incremental analysis to show whether 123 Security should discontinue the industrial systems product line Incremental Analysis for Discontinuation Decision Tot Cortsbution ministerial Systems in cod Less Fed cost savingsindustrial Systems is discried Data income Requirement 2. Prepare consibution mein Income statements to show 123 Security's total operate income under the ho alboratives: (a) with the industrial systems Ine and without the income the difference between the theorematies income numbers to your answer to Requirement 1. What have you learned from this comparison? Begin by precarito the statemenes with and without the industrial systems in the pressure the contribution margint income statement showing the decrease if the industrial systems ines discos parents or a minus sign for an operating loss.) 122 Security Total Analysis of Discontinuing Product Line Total with Total Without Incurial Systems Difference sve Variable Costo Choose from any list or enter any number in the input fields and then continue to the next question Industrial Systems Industrial Systems Difference Sales revenue 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. The operang income dirence calculated on the total analysis of discontinuing a product in the expected decrease in operating income il 122 Security discontinues the industrial systems product in, as shown in Requirement This demonstrates that the incrementalysis approach in Region 1 yields results as the longer croch in Regree 2 tut compares total potating income under the two womes - i Data Table dus anc 2 Product Line Contribution Margin Income Statement 3 For the Year 4 Product lines Industrial Household Company Systems Systems Total $ 330,000 $ 390,000 $ 720,000 6 7 Sales revenue B Less cost of goods sold: Variable 9 48,000 81,000 10 Fixed 33,000 270,000 27,000 $ 60,000 330,000 $ 282,000 $ 309,000 11 Gross profit 12 Less marketing and administrative expenses: on 3 Sec 13 Variable 73,000 135,000 14 Fixed 62.000 39,000 (74,000) $ 21,000 60,000 uys tal op 15 Operating income (loss) $ 188,000 $ 114,000 er Print Done
