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Members of the board of directors of Safe Zone have received the following operating income data for the year ended May 31, 2024: (Click the
Members of the board of directors of Safe Zone have received the following operating income data for the year ended May 31, 2024: (Click the icon to view the operating income data.) by $80,000 and decrease fixed selling and administrative expenses by $11,000. Read the requirements. Requirement 1. Prepare a differential analysis to show whether Safe Zone should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.) Requirements 1. Prepare a differential analysis to show whether Safe Zone should drop the industrial systems product line. 2. Prepare contribution margin income statements to show Safe Zone'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. 3. What have you learned from the comparison in Requirement 2
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