me data nd! i Data Table ys! ECO is sis fin Security First Product Line Contribution Margin Income Statement For the Year Product lines Industrial Household Company Systems Systems Total Sales revenue $ 340,000 $ 390,000 $ 730,000 Less cost of goods sold: Variable 39,000 44,000 83,000 270,000 Fixed 65,000 335,000 Gross profit $ 31,000 $ 281,000 $ 312,000 Less marketing and administrative expenses: Variable 62,000 73,000 135,000 Fixed 36,000 26,000 62,000 $ 182,000 $ (67,000) $ 115,000 Operating income (loss) Print Done n the input fields and then click Check Answer Total ntinuation Decision disco disco Requirements edustr. 1. Prepare an incremental analysis to show whether Security First should discontinue the industrial systems product line. 2. Prepare contribution margin income statements to show Security First's total operating income under the two alternatives: (a) with the industrial systems line and (b) without the line. Compare the difference between the two alternatives' income numbers to your answer to Requirement 1. What have you learned from this comparison? Print Done Members of the board of directors of Security First have received the following operating income Company accountants estimate that discontinuing the industrial systems line will decrease fixed data for the year just ended: cost of goods sold by $86,000 and decrease fixed marketing and administrative expenses by $14,000 (Click the icon to view the operating income data.) Members of the board are surprised that the industrial systems product line is losing money. They Read the requirements commission a study to determine whether the company should discontinue the line. Total Requirement 1. Prepare an incremental analysis to show whether Security First should discontinue the industrial systems product line. Incremental Analysis for Discontinuation Decision Contribution margin lost if Industrial Systems is discontinued Less: Fixed cost savings if Industrial Systems is discontinued Operating income if Industrial Systems is discontinued lost