Members of the board of directors of Safe Zone have received the following operating income data for the year ended May 31, 2012:

Members of the board are surprised that the industrial systems product line is losing money. 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 marketing and administrative expenses by $14,000. Requirements 1. Prepare an incremental analysis to show whether Safe Zone should drop the industrial systems product line. 2. Prepare contribution margin income statements to show Safe Zone