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 $82,000 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 ct-1 PM ints Data table he com sellin Income Statement For the Year Ended May 31, 2024 Product Line Industrial Household Systems Systems Total $ 330,000 $ 360,000 $ 690,000 Net Sales Revenue Cost of Goods Sold: Variable Beses or Fixed 34,000 230,000 264,000 49,000 69,000 83,000 299,000 118,000 382,000 Total Cost of Goods Sold Gross Profit Selling and Administrative Expenses: Variable 66,000 242,000 308,000 63,000 39,000 77,000 21,000 140,000 60,000 Fixed Total Selling and Administrative Expenses Operating Income (Loss) 98,000 200,000 102,000 (36,000) $ $ 144,000 $ 108,000 Print Done Requirements - X 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? Print Done