Members of the board of directors of Security System have received the following operating income data for the year ended May $31,2025$:

View the operating income data.

by $$78,000$ and decrease fixed selling and administrative expenses by $$11,000.$

Read the requirements.

Requirement $1.$ Prepare a differential analysis to show whether Security System should drop the industrial systems product line. $($Use parentheses or a minus sign to enter decreases to profits.$)$

Operating Income Data

Requirements

Prepare a differential analysis to show whether Security System should drop the industrial

systems product line.

Prepare contribution margin income statements to show Security System'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 $1.$

What have you learned from the comparison in Requirement $2?$