Members of the board of directors of Security One have received the following operating income data for the year ended May 31, 2024: 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 $84,000 and decrease fixed selling and administrative expenses by $15,000.

Data table Members of the board of directors of Security One have received the following operating income data for the year ended May 31,2024 : (Click the icon to view the operating income data.) by $84,000 and decrease fixed selling and administrative expenses by $15,000. Read the your answer to Requirement 1. (Use parentheses or a minus sign for an operating loss.) Requirement 3. What have you learned from the comparison in Requirement 2 ? The operating income difference calculated on the total analysis of dropping a product line the expected decrease in operating income if Security One drops the industrial systems product line, as shown in Requirement 1. This demonstrates that the differential analysis approach in Requirement 1 yields result as the longer approach in Requirement 2 that compares total operating income under the two alternatives. Members of the board of directors of Security One have received the following operating income data for the year ended May 31, 2024: (Click the icon to view the operating income data.) sold by $84,000 and decrease fixed selling and administrative expenses by $15,000