Members of the board of directors of Security Team have received the following operating income daca...

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Members of the board of directors of Security Team have received the following operating income daca for the year ended May 31, 2024: (Click the loon 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 $84,000 and decrease fixed selling and administrative expenses by $15,000. Read the recitementa C Requirement 1. Prepare a differential analysis to show whether Security Team should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.) Expected decrease in revenues Expected decrease in total variable costs Expected decrease in fixed costs Expected decrease in total costs Expected decrease in operating income Requirements Data table Security Team Income Statement For the Year Ended May 31, 2024 Product Line Industrial Systems Household Systems Total Net Sales Revenue $ 300,000 $ 310,000 $610,000 Cast of Goods Sold: Variable 1. Prepare a differential analysis to show whether Security Team should drop the industrial systems product line. 2. Prepare contribution margin income statements to show Security Team's total operating Income under the two attematives: (a) with the industrial systems Inc and (b) without the line. Compare the difference between the two aberatives' income numbers to your answer to Requirement 1 3. What have you leamed from the comparison in Requirement 27 Fixed Total Cost of Goods Sold Print Done 33.000 240.000 42,000 75.000 64.000 304,000 273,000 106,000 379,000 Gross Profil 27,000 204,000 231,000 Selling and Administrative Expenses Variable 65,000 72.000 137,000 43,000 Fixed 28,000 71,000 108,000 100.000 Total Selling and Administrative Expenses 208,000 $ Operating Income (Loss) (81,000) $ 104,000 $ 23,000 - x Members of the board of directors of Security Team have received the following operating income daca for the year ended May 31, 2024: (Click the loon 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 $84,000 and decrease fixed selling and administrative expenses by $15,000. Read the recitementa C Requirement 1. Prepare a differential analysis to show whether Security Team should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.) Expected decrease in revenues Expected decrease in total variable costs Expected decrease in fixed costs Expected decrease in total costs Expected decrease in operating income Requirements Data table Security Team Income Statement For the Year Ended May 31, 2024 Product Line Industrial Systems Household Systems Total Net Sales Revenue $ 300,000 $ 310,000 $610,000 Cast of Goods Sold: Variable 1. Prepare a differential analysis to show whether Security Team should drop the industrial systems product line. 2. Prepare contribution margin income statements to show Security Team's total operating Income under the two attematives: (a) with the industrial systems Inc and (b) without the line. Compare the difference between the two aberatives' income numbers to your answer to Requirement 1 3. What have you leamed from the comparison in Requirement 27 Fixed Total Cost of Goods Sold Print Done 33.000 240.000 42,000 75.000 64.000 304,000 273,000 106,000 379,000 Gross Profil 27,000 204,000 231,000 Selling and Administrative Expenses Variable 65,000 72.000 137,000 43,000 Fixed 28,000 71,000 108,000 100.000 Total Selling and Administrative Expenses 208,000 $ Operating Income (Loss) (81,000) $ 104,000 $ 23,000 - x