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Members of the board of direclors of Security One have cecelved the folowing operating income dote toe the year just ended. Compary accountants eslimale that

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Members of the board of direclors of Security One have cecelved the folowing operating income dote toe the year just ended. Compary accountants eslimale that disconinuing bie indwatisl systena ine will decrease (Cick the ioon to view the operateng incorre data) fored cost of goods sold by $31,000 and decrosse fored maketng and adtinistrative opponses by $14,000. Members of the board are surprised that the industrial systems product line is losing money. They commission a tudy bo dotormine whether the company should disontinue the line. Read the requirements Requirement 1. Prepore an ineremental analysat to ahow whother 5 secarty One shoold discontinue tha industal syatema product ine Requirement 2. Propare contribution margin iacome tatements to show Socurty Ones total operating income under tive ho aberuaves (a) with itie ndustial myiens ine and (b) = irout ite ine Compare the diforence between the two aternatives' income numbers to your ansmer to Fleguirement I What hare you leamed from the comparison? discontinued (Use parenthe Ses of a minus sign for an opsenting loss.) Members of the board of directors of Secunty One have received the following coperating income Company accountants estimate that discontinuing the indialfial systems ine wil de What have you leamed from this corrganson? The operating income difference calculated on the total analysi of dicconsinung a product line the urpecded decrease in operairg income ir secuity Orede discorinues the indusinal tystems product line, as shows in Requrerent 1. Thit demonstuases that the incromental analysil approsch in Requrament 1 ylelds resuats as the langor approsch in Requrement 2 that comperes tolat operating ineome undor the two atsprinatives Data table

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