Members of the board of director of soroty Phocow received the triowing operating income out for the year ended May 1, 2004 Click the loon to view the operating Wome data) Members of the board are surprised that the industrial system product ine is not profitable. They comtion a study to determine whether the company whout drop this Company access that drooping ndust systems wit decreasefined cost of goods sold by $83.000 and decrease feeding and administrative expenses by $10.000 Read the requirements Requirement 1. Prepare aderential analysis to show whether Safety Place should drop the inwestos product to. Um parentes ora mission to enter deres to profiel - Data table 300.000 $ 10.000 500.000 in operating income - X 35.000 250.000 205,000 46.000 08.000 81000 319.000 400.000 Requirements 115.000 Not a Rov Cost of Goods Sold Variable Fred Tool Cost of Goods Sold Gross Profe Selling and Administratie Expenses Variable Fixed 15.000 275.000 210.000 Prepare a differential analysis to show whether Safety Place should drop the Industrial systems producine 2 Prepare contribution margin income atments to show Safety Place'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 Requirement1 3 What have you learned from the comparison in Requirement ? 89.000 41.000 110.000 75 000 145.000 27.000 68.000 100.000 255.009 172,000 5 77,000 Total Selling and Administrative Expenses Operating Income (La) (35,000) Members of the board of director of soroty Phocow received the triowing operating income out for the year ended May 1, 2004 Click the loon to view the operating Wome data) Members of the board are surprised that the industrial system product ine is not profitable. They comtion a study to determine whether the company whout drop this Company access that drooping ndust systems wit decreasefined cost of goods sold by $83.000 and decrease feeding and administrative expenses by $10.000 Read the requirements Requirement 1. Prepare aderential analysis to show whether Safety Place should drop the inwestos product to. Um parentes ora mission to enter deres to profiel - Data table 300.000 $ 10.000 500.000 in operating income - X 35.000 250.000 205,000 46.000 08.000 81000 319.000 400.000 Requirements 115.000 Not a Rov Cost of Goods Sold Variable Fred Tool Cost of Goods Sold Gross Profe Selling and Administratie Expenses Variable Fixed 15.000 275.000 210.000 Prepare a differential analysis to show whether Safety Place should drop the Industrial systems producine 2 Prepare contribution margin income atments to show Safety Place'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 Requirement1 3 What have you learned from the comparison in Requirement ? 89.000 41.000 110.000 75 000 145.000 27.000 68.000 100.000 255.009 172,000 5 77,000 Total Selling and Administrative Expenses Operating Income (La) (35,000)
