Members of the board of directors of Safety Point have received the following operating income data for the year ended May $31,2024$

$($Click the icon to view the operating income data$)$ decrease fixed cost of goods sold by $$84,000$ and decrease fixed selling and administrative expenses by $$14,000$

Requirements

Prepare a diflerential analysis to show whether Safety Point should drop the industrial systems product line.

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 $1$

What have you learned from the comparison in Requirement $2?$

Data table

$\backslash$table$[[\backslash$table$[[$Income Statement$],[$For the Year Ended May $31,2024]]],[,$Product Line,Total$],[,,\backslash$table$[[$dustrial$],[$stems$]],\backslash$table$[[$Household$],[$Systems$]]],[$Net Sales Revenue,$$,310,000,330,000S,640,000],[$Cost of Goods Sold:$],[$Variable$,,34,000,44,000,78,000],[$Fixed$,,220,000,62,000,282,000],[$Total Cost of Goods Sold,,$254,000,106,000,360,000],[$Gross Profit,,$56,000,224,000,280,000],[$Selling and Administrative Expenses:$],[$Variable$,,62,000,71,000,133,000],[$Fixed$,,45,000,25,000,70,000],[$Total Selling and Administrative Expenses,,$107,000,96,000,203,000],[$Operating Income $($Loss$),$$$,(51,000),128,000$$$,77,000]]$