Members of the board of directors of Security Alarms have received the folloming operating income data for the year ended May 31, 2018. ef te beaed the industrial ystems product ine is not profitable They commission a study to determing whether the company zhould drop the ine. Company accountands estimate that dropping industrial pysteme will decease fixed cost of goods sold by $82 000 and decrease fixed seling and administrive espenses by $12.000 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 Data Table drop the line. Company accountants estimate that dropping industrial systems will decrease fixed cost of goods solo Security Alarms Income Statement X Requirements For the Year Ended May 31, 2018 Product Line Household Industrial 1. Prepare a differential analysis to show whether Security Alarms should drop the industrial systems product line. Systems Systems Total 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 e difference between the two alternatives' income numbers to your answer to Requirement 1 S Net Sales Revenue 370,000 $ 390,000 S 760.000 Cost of Goods Sold: 3. What have you learned from the comparison in Requirement 22 34,000 82,000 Variable 48,000 250,000 316,000 66,000 Fixed 284,000 114.000 398,000 Print Done Total Cost of Goods Sold 86,000 362,000 Gross Profit 276,000 Selling and Administrative Expenses: 66.000 140,000 Variable 74,000 43,000 29,000 72.000 Fixed 109,000 103,000 212,000 Total Selling and Administrative Expenses S (23,000) 173,000 S 150,000 Operating Income (Loss) Print Done