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$)$ decrease fixed cost of goods sold by $$83,000$ and decrease fixed selling and administrative expenses by $$11,000.$

Read the requirements

Requirement $1.$ Prepare a differential analysis to show whether Security Alarms should drop the industrial systems product line. $($Use

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Requirements

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Prepare a differential analysis to show whether Security Alarms should drop the industrial systems product line

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 $1$

What have you learned from the comparison in Requirement $2?$

Data table

$\backslash$table$[[\backslash$table$[[$Income Statement$],[$For the Year Ended May $31,2024]]],[,$Product Line,Total$],[,,\backslash$table$[[$ustrial$],[$stems$]],\backslash$table$[[$Household$],[$Systems$]]],[$Net Sales Revenue,$$,330,000S,360,000$$$,690,000],[$Cost of Goods Sold$],[$Variable$,,35,000,46,000,81,000],[$Fixed$,,220,000,66,000,286,000],[$Total Cost of Goods Sold,,$255,000,112,000,367,000],[$Gross Profit,,$75,000,248,000,323,000],[$Selling and Administrative Expenses:$],[$Variable$,,66,000,77,000,143,000],[$Fixed$,,45,000,22,000,67,000],[$Total Selling and Administrative Expenses,,$111,000,99,000,210,000],[$Operating Income $($Loss$),$$$,(36,000)$~$=,149,000,113,000]]$