Members of the board of directors of Safety Step 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 $82,000 and decrease fixed selling and administrative expenses by $10,000. Read the requirements. Requirement 1. Prepare a differential analysis to show whether Safety Step should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.) in operating income Requirements 2. Prepare a differential analysis to show whether Safety Step should drop the industrial systems product line. Prepare contribution margin income statements to show Safety Step'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? Safety Step Income Statement For the Year Ended May 31, 2018 Product Line Industrial Household Systems Systems Total $ 300,000 $ 370,000 $ 670,000 Net Sales Revenue Cost of Goods Sold: Variable Fixed 39,000 250,000 289,000 49,000 62,000 111,000 88,000 312,000 400,000 11,000 259,000 270,000 Total Cost of Goods Sold Gross Profit Selling and Administrative Expenses: Variable 69,000 39,000 76,000 24,000 145,000 63,000 Fixed Total Selling and Administrative Expenses 108,000 (97,000) $ 100,000 159,000 $ 208,000 62,000 $ Operating Income (Loss)