et Requirements 1. Prepare a differential analysis to show whether Safe Zone should drop the industrial systems product line. 2. Prepare contribution margin income statements to show Safe Zone'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? Print Done - X embers of the board of directors of Safe Zone have received the following operating income data for the year ended May 31, 2024 (Click the icon to view the operating income data) Next question 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 systema decrease faed cost of goods sold by $81,000 and decrease fixed selling and administrative expenses by $12,000. Read the requrements + Net Sales Revenue Cost of Goods Sold: Safe Zone Income Statement For the Year Ended May 31, 2024 Product Line Industrial Household Systems Systems Total $ 69 310,000 $ 360,000 $670,000 Variable 36,000 230,000 42,000 69,000 299,000 78,000 Fixed 266,000 111,000 377,000 Total Cost of Goods Sold Gross Profit 44,000 249,000 293,000 Selling and Administrative Expenses: Variable 66,000 74,000 140,000 45,000 22,000 67,000 Fixed Total Selling and Administrative Expenses 111,000 96,000 207,000 (67,000) $ 153,000 $ 86,000 Operating Income (Loss)