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Members of the board of directors of Adobe Security have received the ollowing operating income data for the year just ended Requirements 1. Prepare an

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Members of the board of directors of Adobe Security have received the ollowing operating income data for the year just ended Requirements 1. Prepare an incremental analysis to show whether Adobe Security shoulkd B (Click the icon to view the operating income data) Members of the board are surprised that the industrial systems product line is discontinue the industrial systems product line 2. Prepare contribution margin income statements to show Adobe Secunty'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 osing money They commission a study to determine whether the company should discontinue the line. Company accountants estimate that discontinuing industrial systems will decrease fixed cost of goods sold by $84,000 and decrease fixed marketing and administrative expenses by $11,000 from this comparison? Requirement 1. Prepare an incremontal analysis to show whother Adobe Security should discontinue the industrial systems product ine Incremental Analysis for Discontinuation Decision Total Contribution margin lost if Industrial Systems is discontinued Less Fixed cost savings if Industrial Systems is discontinued Operating income lIndustrial Systems is discontmued Requirement 2. Prepare contribution margin income statements to show Adobe Security's total operating income under the two alternatives (a) with the industrial systems line and (b) without the line Compare the diference between the two alternatives' income numbers to your answer to Requirement 1. What have you learned from this comparison? Begin by preparing the statements with and without the industrial systems line, then prepare the contribution margin income statement showing the decrease if the ndustrial systems ine is discontinued (Use parentheses or a minus sign for an operating loss )

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