Members of the board of directors of Security First have received the following operating income data for the year ended May 31, 2018: 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 $83,000 and decrease fixed selling and administrative expenses by $15,000. Read the requirements. Requirement 1. Prepare a differential analysis to show whether Security First should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.) in operating income Choose from any list or enter any number in the innut fields and then clickCheckAnswer i Data Table Members of the board of directors of Security First have received the following operating income data for the year ended N (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 d systems will decrease fixed cost of goods sold by $83,000 and decrease fixed selling and administrative expenses by $15, ror Te Tea Enfueu vay JT, ZU TO Product Line Read the requirements. Requirement 1. Prepare a differential analysis to show whether Security First should drop the industrial systems product I Industrial Household Systems Systems Total $ 310,000 $ 320,000 $ 630,000 Net Sales Revenue Cost of Goods Sold: Variable 34,000 240,000 44,000 69,000 78,000 309,000 Fixed Expected decrease in revenues Expected increase in revenues i Requirements 274,000 X 113,000 387,000 - 36,000 207,000 243,000 Total Cost of Goods Sold Gross Profit Selling and Administrative Expenses: Variable 1. Pre Fixed Prepare a differential analysis to show whether Security First should drop the industrial systems product line. 2. Prepare contribution margin income statements to show Security First'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? 63,000 40,000 103,000 (67,000) $ 72,000 24,000 96,000 111,000 $ 135,000 64,000 199,000 44,000 Total Selling and Administrative Expenses $ Operating Income (Loss) Choose from Print Done Print Done 2 parts romain