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Members of the board of directors of Safety Place have received the following operating income data for the year ended May 31, 2024: (Click the

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Members of the board of directors of Safety Place have received the following operating income data for the year ended May 31, 2024: (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 $81,000 and decrease fixed selling and administrative expenses by $12,000. Read the Requirement 1. Prepare a differential analysis to show whether Safety Place should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.) Safety Place Income Statement For the Year Ended May 31, 2024 Product Line \begin{tabular}{cccc} \hline Industrial Systems & Household Systems & Total \\ \hline$300,000$ & 320,000$620,000 \\ \hline \end{tabular} Cost of Goods Sold: Prepare a differential analysis to show whether Safety Place should drop the industrial systems product line. Prepare contribution margin income statements 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 Requirement 1. What have you learned from the comparison in Requirement 2 ? Requirement 3. What have you leamed from the comparison in Requirement 2 ? The operabing income ditference calculoted on the total analysis of dropping a product line the expected decrease in operating income if Securty One drops the industria systerrs product line, as shown in Requinement 1. This cemonstrates that the differental analysis approach in Requirement 7 yelids result as the longer approach in Requiremant 2 that compares lotal operasng income under the two allematives

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