Members of the board of directors of Security One 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 $82,000 and decrease fixed selling and administrative expenses by $12,000. Read the requirements. Requirement 1. Prepare a differential analysis to show whether Security One should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.) $ (310,000) Expected decrease in revenues Expected decrease in total variable costs $ 108,000 94,000 Expected decrease in fixed costs Expected decrease in total costs 202,000 Expected decrease in operating income $ (108,000) Requirement 2. Prepare contribution margin income statements to show Security One'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. (Use parentheses or a minus sign for an operating loss.) Requirement 2. Prepare contribution margin income statements to show Security One'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. (Use parentheses or a minus sign for an operating loss.) Security One Contribution Margin Income Statement For the Year Ended May 31, 2018 Totals With Totals Without Industrial Systems Industrial Systems Change if Industrial Systems Is Dropped Net Sales Revenue Variable Costs: Manufacturing Selling and Administrative Total Variable Costs Contribution Margin Fixed Costs: Manufacturing Selling and Administrative Total Fixed Costs Operating Income (Loss) Enter any number in the edit fields and then click Check Answer. Data Table enc Security One Income Statement For the Year Ended May 31, 2018 Product Line Industrial Household Systems Systems Total $ 310,000 $ 330,000 $ 640,000 Net Sales Revenue Cost of Goods Sold: Variable Fixed 39.000 250,000 289,000 44,000 65,000 109,000 83,000 315,000 398,000 Total Cost of Goods Sold Gross Profit Selling and Administrative Expenses: 21,000 221,000 242,000 Variable 69,000 41,000 Fixed 70,000 139,000 21,000 62,000 91,000 201,000 130,000 $ 41,000 Total Selling and Administrative Expenses 110,000 89,000) $ Operating Income (Loss) $ Print Done