line decision (Learning Objective 4) Members of the board of directors of Security One have received the following operating income data for the year just ended: Product Line Industrial Household Systems Systems $320,000 $330,000 Sales revenue.. Cost of goods sold: Total $650,000 F Total cost of goods sold. Grosoft Marketing and administrative expenses: Variable $ 39,000 220,000 $259,000 $ 61,000 $ 42,000 67,000 $109,000 $221,000 $ 81,000 287,000 $368,000 $282,000 atal marketing and administrative expenses .... Operating income (loss).... 65,000 40,000 $105,000 S (44,000) 73,000 22,000 $95,000 $126,000 138,000 62,000 $200,000 $82,000 Members of the board are surprised that the industrial systems product line is losing oney. They commission a study to determine whether the company should discon. wnue the line. Company accountants estimate that discontinuing industrial systems will decrease fixed cost of goods sold by $83,000 and decrease fixed marketing and adminis. trative expenses by $13,000. Requirements Prepare an incremental analysis to show whether Security One should discontinue the Industrial systems product line. 2. Prepar Prepare contribution margin income statements to show Security One's total operat ng income under the two alternatives: (a) with the industrial systems line and (b) with wut the line. Compare the difference between the two alternatives income numbers your answer to Requirement 1. What have you learned from this comparison