Members of the boand of directors of Security Team have received the following operating income data for the year ended March 31, 2018 (Cick the loon to view the operating income data) Members of the board are surprised that the industrial systems product line is not profitable. They commission a sudy to determine whether the compary should drop the line. Company acccuntants estimate Phat dropping industial systems will decrease fxed cost of goods sold by $81,000 and decroase foxed selling and administrative expenses by $15,000 Requirement 1. Prepare a diforential analysis to show whether Security Team should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to proits) in operaling income Requirement 2 Prepare contribution margin income statements to show Security Check's total operating income under the two ahematives: (a) with the industrial systems line and (b) without the line Compare the ditference between the two altematvee' income numbers to your answnr to Requirement 1. (Use parentheses or a minus sign for an gperating loss.j Security Team Contribution Margin Income Statement For the Year Ended March 31, 2018 Choose from any list or enter any number in the input fields and then continue to the next question Oh Data Table BEB Membe system Requirements Product Line Systems Systeme Total 300,000 $ 330,000 s 630,000 Read t systems product line Net Sales Revenue Cost of Goods Sold: 2. Prepare contribution margin income statements to show Seaurity Checik's total operating Requir noome under the two altematives (a) with the industrial systems line and (bj without the line. Compare the difference bebween the two ahematives income numbers to your answer to Variable 5,0002,000 77,00 21000000 273.000 63,000 273,000 210,000 245,000105,000 360,000 56,000 225,000 00,000 3 What have you leamed from the comparison in Requirement 2 Fxed Total Cost of Goods Sold Gross Prof Seling and Administrative Expenses Print Done 66,000.0001000r the two ahomatives(a) with the industrial systems ine and (tb) without the ne Compare the difference 30,0002.000 arss) Variable 67,000ag Fxed 106,000 105,000 210,000 Total Seling and Administrative Expenses 5 (50,000)$ 120,000 $ 70,000 Operating Inoome (Loss) Print Done Members of the board of directors of Security Team have received the following operating income data for the year ended March 31, 2018: EB Click the icon to view the operating income data.) Mombers of the board are surprised that the industrial systems product line is not profitable. They commission a study to determine whether th systems will decrease fixed cost of goods sold by $81,000 and decrease fixed selling and administrative expenses by $15,000. Read the requirements. y ream Contribution Margin Income Statement For the Year Ended March 31, 2018 Change if Industrial Systems Is Dropped Totals With Totals Without Industrial Systems Industrial Systems Net Sales Revenue Variable Costs: Manufacturing Selling and Administrative Total Variable Costs Contribution Margin Fixed Costs: Manufacturing Choose from any list or enter any number in the input fields and then continue to the next question Members of the board of directors of Security Team have received the folowing operating inoome data for the year ended Manch 31, 2018 EEB (Clok the loon to view the operating income data) systems will dearease fxed cost of goods sold by $81,000 and deorease fxed seling and administrative expenses by $15.000 Read the of the board are surprised that the industrial systems product line is not profitable. They commission a study to determine wheter the company should drop the line. Compary accourtants estimafke that dropping Industrial Variable Costs Margin wed Costs Selling and Administrative Total Fixed Costs Operating Income (Loss) Requirement 3. What have you learned from the comparison in Requirement 27 The operating income ifference caloulated on the total analysis of dropping a product line ,| the expected decrease in operating income Searty Team drops te rastval systerns productie, as shown in Requirement 1 This demonstrates that the diflerential analysis approach in Requirement f yelds Y resuilt as the longer approach in Requirement 2 that compares total operating income under the two aheatives Choose from any list or enter any number in the input fieids and then continue to the next