Members of the board of directors of Security Team have received the following operating income data for the year just Company accountants estimate that discontinuing the industrial systems line will decrease xed cost of goods sold by $81,000 and decrease xed marketing and administrative expenses by $14,000. ended: a (Click the icon to view the operating income data) Read Members of the board are surprised that the industrial systems product line is losing money. They commission a study to determine whether the company should discontinue the line. Data table A B C D Requirement 1. Prepare an incremental analysis to show whether Security Team should discontinue the industrial systems product line. 1 Security Team Incremental Analysis for Discontinuation Decision Total 2 Product Line Contribution Margin Income Statement Contribution margin lost if Industrial Systems is discontinued 3 For the Year Less: Fixed cost savings if Industrial Systems is discontinued 4 Product lines , , . . , , , Industrial Household Company Operating Income if Industrial Systems is discontinued 6 Systems Systems Total 7 Sales revenue $ 300,000 $ 320,000 $ 620,000 8 Less cost of goods sold: . 9 Variable 34,000 44,000 78,000 Ftequwements 10 Fixed 200,000 60,000 260,000 11 Gross prot $ 66,000 $ 216,000 $ 282,000 1. Prepare an incremental analysis to show whether Security Team should , . . . . . . . , 12 Less marketing and administrative expenses: discontinue the industrial systems product line 2. Prepare contribution margin income statements to show Security Team's total 13 Variable 69.000 77.000 146.000 operating income under the two alternatives: (a) with the industrial systems line . and (b) without the line. Compare the difference between the two alternatives' landw income numbers to your answer to Requirement 1, What have you learned 15 Operating income (loss) $ (48,000) $ 115,000 $ 67,000 from this comparison