Members of the board of directors of Security Alarms have received the following operating income data for the year ended May 31, 2024: (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 $84,000 and decrease fixed selling and administrative expenses by $10,000. Read the requirements. Requirement 1. Prepare a differential analysis to show whether Security Alarms should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.) in operating income Requirements Data table Security Alarms Income Statement For the Year Ended May 31, 2024 Product Line Household Industrial Systems Systems Total Net Sales Revenue $ 310,000 $ 330,000 $640,000 Cost of Goods Sold: Variable 34,000 43,000 77,000 220,000 68,000 288,000 Fixed 254,000 111,000 365,000 Total Cost of Goods Sold Gross Profit 56,000 219,000 275,000 Selling and Administrative Expenses: Variable 68,000 70,000 138,000 45,000 Fixed 29,000 74,000 $ 113,000 (57,000) $ 99,000 212,000 120,000 $ 63,000 1. Prepare a differential analysis to show whether Security Alarms should drop the industrial systems product line. 2. Prepare contribution margin income statements to show Security Alarm'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? Total Selling and Administrative Expenses Operating Income (Loss) Print Done Print Done