Members of the board of directors of Safety Step have received the following operating incorre 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 $83,000 and decrease fixed selling and administrative expenses by $15,000. Read the requirements. Requirement 2. 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. (Use parentheses or a minus sign for an operating loss.) Safety Step Data Table Contribution Margin Income Statement For the Year Ended May 31, 2018 Totals With Totals Without Change If Industrial Safety Step Industrial Systems Industrial Systems Systems Is Dropped Income Statement For the Year Ended May 31, 2018 Net Sales Revenue Variable Costs: Product Line Manufacturing Industrial Household Systems Systems Total Selling and Administrative Net Sales Revenue $ 350,000 $ 360,000 $ 710,000 Total Variable Costs Cost of Goods Sold: Contribution Margin Variable 36.000 43,000 79.000 Fixed Costs: Fixed 230,000 62,000 292.000 Manufacturing Total Cost of Goods Sold 266,000 105,000 371,000 Selling and Administrative Gross Profit 84,000 255,000 339,000 Total Fixed Costs Selling and Administrative Expenses: Operating Income (Loss) Variable 62,000 72,000 134,000 Fixed 45,000 27.000 72,000 Enter any number in the edit fields and then click Check Answer. Total Selling and Administrative Expenses 107,000 99.000 206,000 Operating Income (Loss) (23,000) $ 156,000 $ 133,000 1 part remaining