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Members of the board of directors of Security First have received the following operating income data for the year just ended: Company accountants estimate that
Members of the board of directors of Security First have received the following operating income data for the year just ended: Company accountants estimate that discontinuing the industrial systems line will decrease fixed cost of goods sold by $86,000 and (Click the icon to view the operating income data.) Members of the board are surprised that the industrial systems product line is losing money. They commission a study to determine whether decrease fixed marketing and administrative expenses by $17,000. Read the ! the company should discontinue the line. Requirement 1. Prepare an incremental analysis to show whether Security First should discontinue the industrial systems product line. Data table Requirements 1. Prepare an incremental analysis to show whether Security First should discontinue 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 income numbers to your answer to Requirement 1 . What have you learned
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