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members of the Board of Directors of security first-see the following operating income data for the year and it May 31, 2018: members of the
members of the Board of Directors of security first-see the following operating income data for the year and it May 31, 2018:
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 ine is not profitable. They commission a udy to determine whether the company should drop the line company accountants estimate that dropping industrial systems will decrease fixed cost of goods sold by 103,000 and decrease fixed selling and administrative expenses by $12,000 Read the requirements Afference between the two alternatives income numbers to your answer to Requirement 1. (Use parentheses or Security First Data Table Contribution Margin Income Statement For the Year Ended May 31, 2018 Totals With Totals Without Change if Industrial Security First Industrial Systems Industrial Systems Systems Is Dropped Income Statement Net Sales Revenue For the Year Ended May 31, 2018 Variable Costs: Product Line Manufacturing Industrial Household Selling and Administrative Systems Systems Total Total Variable costs Net Sales Revenue $ 340,000 $ 300.000 700.000 Cost of Goods Sold: Contribution Margin Variable 33.000 Fixed Costs: 220.000 Food 69.000 289.000 Manufacturing Total Cost of Goods Sold 253,000 Selling and Administrative Gross Profit 87,000 248.000 335,000 Total Forced Costs Selling and Administrative Expenses Operating Income (Loss) Variable 69.000 76,000 145,000 43.000 Enter any number in the edit fields and then click Check Answer. Fixed 112.000 103.000 215,000 Total Selling and Administrative Expenses 1 part Clear $ 25.000) $ 145,000 $ 120,000 Operating income (Loss) 1 remaining 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 lawn. Company accountants estimate that dropping industrial systems will decrease fixed cost of goods sold by $83,000 and decreased fixed selling and administrative expenses by $12,000.
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