*** HOOP Members of the board of directors of Security System 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 udy to determine whether the company should drop the line Company courtant estimate that dropping industriale s decreased cost of goods sold by $84.000 and decrease feeling and ad erse by 12.000 Read the requirements is to show whether Security System should do the industrial Data Table product line. Uspored Requirement 1. Prepare a different Expected decrease in revenues Expected decrease in total variable costs Expected decrease in fed costs $ 300,000) $ 102 000 Expected decrease in total costs Expected decrease in income 12.000 51102.000 Income Statement For the Year Ended May 11, 2018 Product Line Industrial Household Systems Systems Total 300.000 $ 20.000 $ 60.000 we es Net Sales Revenue Cost of Goods Sold Requirement 2. Prepare contribution margin income statements to show Security Systems o perating income under the a tomatives income numbers to your answer to Requirement 1. (Une parentheses or a minus for an eng Security System Contribution Margin income Statement For the Year Ended May 31, 2018 Totals With Totals Without Change if Industrial Industrial Systems Industrial Systems Systems is Dropped Net Sales Revenue 300000 S 320,000 Variable Costs Variable 3.000 230.000 266,000 49.000 66.000 115,000 5.000 200.000 381.000 Total Cost of Goods Sold Gross Pro Seling and Administrative Expenses Variable 34,000 205.000 230.000 Enter any number in the edit fields and then click Check Answer 66.000 70.000 21.000 91.000 part remaining Total Selling and Administrative Expenses 150.000 61.000 197,000 42.000 100.000 (72.000) $ Clear All Operating Income (Loss) $ 114,000 $ are contribution margin income statements to show Security System tolering income under the ailematives' income numbers to your answer to Requirement 1. (Use parentheses or mission for an operatings) w aves with the in ermine and without the compare the Security System Contribution Margin Income Statement security system Contribution Margin Income Statement For the Year Ended May 31, 2018 Totals With Totals Without Industrial Systems Industrial Systems $ 320,000 Change if Industrial Systems Is Dropped Net Sales Revenue Variable Costs: Manufacturing Selling and Administrative Total Variable Costs Contribution Margin Fixed Costs: Manufacturing Selling and Administrative Total Fixed Costs Operating Income (Loss) 49,000 DIN 70,000 1000 119,000 201,000