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 $15,000 Read the reguirements 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.) Data Table Safety Step Income Statement For the Year Ended May 31, 2018 in operating income Product Line Industrial Household Systems Systems Requirements Total Net Sales Revenue $ 310,000 $ 330,000 S 640,000 1. 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 What have you leamed from the comparison in Requirement 2? Cost of Goods Sold: 2. Variable Fixed Total Cost of Goods Sold Gross Profit Selling and Administrative Expenses 33,000 230,000 263,000 47,000 48,000 81,000 68,000 298,000 116,000 379.000 214,000 261,000 3. Print Done Variable 72,000 140,000 28,000 71.000 100,000 211,000 $ (64,000) $ 114,000 S 50,000 68,000 43,000 111,000 Fixed Total Selling and Administrative Expenses Operating Income Loss) hoose from any list or enter any number in the input fields and then click Check Answer. PrintDone parts remaining Clear All