Homework: Chapter 25 Homework 2 of 3 (1 complete) HW Score: 11.11%, 0.33 of 3 Score: 0 of 1 pt P25-23A (similar to) 3 Question Help Members of the board of directors of Safe Zone have received the following operating income data for the year ended May 31, 2018: (Click the icon to view the operating income data.) 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 systems will decrease fixed cost of goods sold by $80,000 and decrease fixed selling and administrative expenses by $15,000 Read the requirements Requirement 1. Prepare a differential analysis to show whether Safe Zone should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.) Expected decrease in fixed costs Expected decrease in total variable costs Expected increase in fixed costs Expected increase in total variable costs Choose from any list or enter any number in the input fields and then click Check Answer 2 of 3 (2 complete) folld 0 Data Table dud sellit Company es to profits Safe Zone Income Statement For the Year Ended May 31, 2018 Product Line Industrial Household Systems Systems Total 300,000 $ 360,000 $ 660,000 Net Sales Revenue Cost of Goods Sold: Variable Fixed Total Cost of Goods Sold Gross Profit Selling and Administrative Expenses: Variable 36,000 250,000 286,000 14,000 49,000 62.000 111,000 249,000 85,000 312,000 397,000 263,000 Fixed Total Selling and Administrative Expenses Operating Income (Loss) 61,000 39,000 100,000 (86,000) $ 75,000 28.000 103,000 146,000 $ 136,000 67,000 203,000 60,000 $ Print Done Clear All