Members of the board of directors of Safety Systems have received the following operating income det for the year just ended: Cick the len ta vw the operating Income data. Members of the board are surprised that the industrial systems product line is losing money. They commissions sludy to determine whether the omaany should continue the Ira. Company accountants estimate the discontinuing the industrial systems line will decrease fixed cost of goods sold by $7.000 and decrease fixed marketing and acmiriirive expenses by 314,000. Read the requirements Incremental Analysis for Discontinuation Decision Total Contribution margin loat if Industrial Systems is discontinued Less Fined cost savings 7 Induslrial Systems is discontinued Operating income Industrial Systems is discontinued Data Table Requirement 2. Prepare montribution marcin income statements to What have you learned from this comparsan? Safety Systems' tal operating income under the two alamatives: (awith the industrial systems ire and boy without the line. Con Begin by preparing the statements with and without the industrial systems ine, the prepare the contribution margin income statement showing the decrease if the industrial systems ine is discontinued. Balety Systems Total Analysis of Discontinuing a Product Line Butter Totals With Totals Without Industrial Systems Industrial Systems SALA VANA Variable expenses Cost of goods sol Marketing and administrative expense Talal vanable expenses Contrition margin Fixed expenses: Cost of goods sol Marketing and administrative expense Total fred expenses Operating income (love) What have you learned from this comparisan? The operating incorre difference calculated on the total analysis of discontinuing a product line Variable Safety Systeme Product Line Contribution Margin Income Statement For the Year Product lines Industrial Household Company Systems Systems Total Sales revenue $ 380,000 $ 370,000 S 730,000 Lees cost of goods sold: 39,000 48,000 81.000 Flyad 250.000 64.000 314.000 Gross profir $ 77,000 $ 258,000 S 336,000 Lees marketing and administrative experges Variable 37,000 77,000 144.000 Flyad 20.000 64.000 $ (34000) $ 161,000 S 127,000 Operating in some foss Print Done y the expected decrease in uperating income il Safety Sys.ems diecontinues the industrial systems product line, as shown in Requirement 1. This demonstrates that the incremental analysis approach in Requirement yields resuts as the longer approach in Requirement that compares total operating income under the two alternatives. Choose from any liat or enter any number in the input fields and then continue to the next question. Members of the board of directors of Safety Systems have received the following operating income det for the year just ended: Cick the len ta vw the operating Income data. Members of the board are surprised that the industrial systems product line is losing money. They commissions sludy to determine whether the omaany should continue the Ira. Company accountants estimate the discontinuing the industrial systems line will decrease fixed cost of goods sold by $7.000 and decrease fixed marketing and acmiriirive expenses by 314,000. Read the requirements Incremental Analysis for Discontinuation Decision Total Contribution margin loat if Industrial Systems is discontinued Less Fined cost savings 7 Induslrial Systems is discontinued Operating income Industrial Systems is discontinued Data Table Requirement 2. Prepare montribution marcin income statements to What have you learned from this comparsan? Safety Systems' tal operating income under the two alamatives: (awith the industrial systems ire and boy without the line. Con Begin by preparing the statements with and without the industrial systems ine, the prepare the contribution margin income statement showing the decrease if the industrial systems ine is discontinued. Balety Systems Total Analysis of Discontinuing a Product Line Butter Totals With Totals Without Industrial Systems Industrial Systems SALA VANA Variable expenses Cost of goods sol Marketing and administrative expense Talal vanable expenses Contrition margin Fixed expenses: Cost of goods sol Marketing and administrative expense Total fred expenses Operating income (love) What have you learned from this comparisan? The operating incorre difference calculated on the total analysis of discontinuing a product line Variable Safety Systeme Product Line Contribution Margin Income Statement For the Year Product lines Industrial Household Company Systems Systems Total Sales revenue $ 380,000 $ 370,000 S 730,000 Lees cost of goods sold: 39,000 48,000 81.000 Flyad 250.000 64.000 314.000 Gross profir $ 77,000 $ 258,000 S 336,000 Lees marketing and administrative experges Variable 37,000 77,000 144.000 Flyad 20.000 64.000 $ (34000) $ 161,000 S 127,000 Operating in some foss Print Done y the expected decrease in uperating income il Safety Sys.ems diecontinues the industrial systems product line, as shown in Requirement 1. This demonstrates that the incremental analysis approach in Requirement yields resuts as the longer approach in Requirement that compares total operating income under the two alternatives. Choose from any liat or enter any number in the input fields and then continue to the next