Members of the board of directors of Security Check 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 $$80,000$ and decrease fixed selling and administrative expenses by $$12,000.$

Read the requirements.

Requirement $1.$ Prepare a differential analysis to show whether Securit