Members of the board of directors of Safety Point 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 $15,000. Read the requirements. Requirement 1. Prepare a differential analysis to show whether Safety Point should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.) - X Requirements in operating income 1. Prepare a differential analysis to show whether Safety Point should drop the industrial systems product line. 2. Prepare contribution margin income statements to show Safety Point'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? Print Done Data Table Safety Point Income Statement For the Year Ended May 31, 2018 Product Line Industrial Household Systems Systems Total 310,000 $ 370,000 $ 680,000 Net Sales Revenue Cost of Goods Sold: Variable 33,000 250,000 48,000 62,000 81,000 312,000 283,000 110,000 393,000 Fixed Total Cost of Goods Sold Gross Profit Selling and Administrative Expenses: Variable 27,000 260,000 287,000 61,000 39,000 75,000 24,000 136,000 63,000 Fixed Total Selling and Administrative Expenses 100,000 99,000 199,000 $ Operating Income (Loss) (73,000) $ 161,000 $ 88,000