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 $11,000. Read the requirements. i Data Table - X systems product line. (Use parentheses or a minus sign to enter decreases to profits.) Safety Point Income Statement For the Year Ended May 31, 2018 Product Line Industrial Household Systems Systems Total $ 310,000 $ 320,000 $ 630,000 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. (Use parentheses Net Sales Revenue Cost of Goods Sold: Variable 39,000 210,000 48,000 62,000 110,000 210,000 87,000 272,000 359,000 271,000 rial ped Fixed Total Cost of Goods Sold Gross Profit Selling and Administrative Expenses: Variable 249,000 61,000 Fixed 68,000 40,000 108,000 47,000) $ 72,000 29,000 101,000 109,000 $ 140,000 69,000 209,000 62,000 Total Selling and Administrative Expenses $ Operating Income (Loss) Print Done Activate Window 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.) Expected decrease in revenues $ (310,000) Expected decrease in total variable costs $ 107,000 Expected decrease in fixed costs 95,000 Expected decrease in total costs 202,000 $ (108,000) Expected decrease in operating income Requirement 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. (Use parentheses or a minus sign for an operating loss.) Safety Point Contribution Margin Income Statement For the Year Ended May 31, 2018 Totals With Totals Without Change if Industrial Industrial Systems Industrial Systems Systems Is Dropped Net Sales Revenue Variable Costs: Manufacturing Selling and Administrative Total Variable Costs Contribution Margin Fixed Costs: Manufacturing Selling and Administrative Total Fixed Costs Operating Income (Loss)