ist 1 T (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 $12,000. Read the requirements Variable Costs Manufacturing 84.000 47,000 131,000) Selling and Administrative 137.000 73,000 64,000 221,000 120.000 195.000) Tobal Variable Costs 139.000 260 000 165.000 Contribution Margin Fred Costs 323,000 Manufacturing 70,000 Selling and Administrative Tutal Feed Costs Operating Income (Loss) Requirement 3. What have you leamed from the comparison in Requirement 2 The operating income difference calculated on the total analys of dropping a product ine operating income if Security Check drops the industsal systems product line as shown in Aurement This demonstrates that the differential analysis approach in Requirement yields Requirement 2 that compares total operating income under the feo shernatives the expected decimase in a in the longer acertach De Ramaining Submit quiz 814 ata table This musetin Net Sales Revenue Cost of Goods Sold Variable Fixed Total Cost of Goods Sold Gross Profit Security Check Income Statement For the Year Ended May 31, 2024 Product Line Industrial Household Systems Systems Total $ 360,000 $ 380,000 $ 740,000 37,000 47,000 84,000 260,000 63,000 323,000 297,000 110,000 407,000 83.000 270,000 333,000 Selling and Administrative Expenses Variable 64.000 73.000 137,000 Fixed 44,000 26.000 70.000 Total Seling and Administrative Expernes 10.000 P9.000 207.000 145,000) 171,000 120,000 Operating Income (Loss) Print Done acer Time Remaining