Members of the board of directors of Safe Zone have received the following operating income data for the year ended May 31, 2018: (Click the icon to view the operating income data.) Members of the board are surprised that the industrial systems product line is not profitable. They commission a study to determine whether the company should drop the line. Company accountants estimate that dropping industrial systems will decrease fixed cost of goods sold by $84,000 and decrease fixed selling and administrative expenses by $14,000. 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 in operating income 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 27 Data table Safe Zone Income Statement For the Year Ended May 31, 2018 Product Line Industrial Systems Household Systems Total Net Sales Revenue $ 300,000 $ 330,000 $630,000 Cost of Goods Sold: Variable 34,000 42,000 76,000 240,000 69,000 309,000 Fixed Total Cost of Goods Sold 274,000 111,000 385,000 Gross Profit 26,000 219,000 245,000 Selling and Administrative Expenses: Variable 62.000 74,000 136,000 45.000 21,000 60,000 Fixed Total Selling and Administrative Expenses 107,000 95,000 202,000 $ (81,000) 5 124,000 $ 43,000 Operating Income (Loss)