Homework: Assignment #4 Sa Score: 3.89 of 20 pts 8 of 8 (7 complete) HW Score: 57.89%, 57.89 of 100 P8-48A (similar to) Question Help Members of the board of directors of Security One 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. The company should drop the line. Company accountants estimate that dropping industrial systems More Info $78,000 and decrease fixed marketing and administrative expenses by $18,000. Requirement 1. What have you learned from this comparison? Begin by preparing the statements with and without the industrial systems line, then prepare the , Requirements 1. Prepare an incremental analysis to show whether Security One should drop the industrial systems product line. Thents to show Security One's total operating income under the two alternatives: (a) with the Xine. Compare the difference between the two alternatives' income numbers to your answert m this comparison? (Use parentheses or a minus sign for an operating loss.) Product Line Security One Total Analysis of Dropping a Product Line Industrial Household Systems Systems Total 390,000 $ 400.000 $ 790,000 Totals With Industrial Systems Totals Without Industrial Systems Sales revenue Cost of goods sold: Variable 39.000 $ 250.000 47,000 $ 71.000 86.000 321.000 Sales revenue Fixed 289.000 118.000 407.000 101.000 282.000 383.000 Variable expenses: Cost of goods sold Marketing and administrative expense Total variable expenses Total cost of goods sold Gross profit Marketing and administrative expenses Variable 65.000 44,000 73.000 30.000 138.000 74.000 Contribution margin Fixed Fixed expenses: Total marketing and Cost of goods sold 109.000 103.000 212.000 administrative expenses (8.000) S 179.000 $ 171,000 Operating income (loss) Marketing and administrative expense Total fixed expenses Operating income (loss) Print Done Enter any number in the edit fields and then click Check