Members of the board of directors of Security Team have received the following operating income data for the year ended March 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 $81,000 and decrease fixed selling and administrative expenses by $15,000 Read the requirements 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.) in operating income Requirement 2. Prepare contribution margin income statements to show Security Check'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 alternatves' income numbers to your answer to Requirement 1. (Use parentheses or a minus sign for an operating loss.) Security Team Contribution Margin Income Statement For the Year Ended March 31, 2018 March 3 Choose from any list or enter any number in the input fields and then continue to the next question. Members of the board of directors of Security Team have received the following operating income data for the year ended March 31, 2018: EEB (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 $81,000 and decrease fixed selling and administrative expenses by $15,000 Read the requirements Security Team Contribution Margin Income Statement For the Year Ended March 31, 2018 Totals With Totals WithoutChange if Industrial Industrial Systems Systems Is Dropped Industrial Systems Net Sales Revenue Variable Costs: Manufacturing Selling and Administrative Total Variable Costs Contribution Margin Fixed Costs: Choose from any list or enter any number in the input fields and then continue to the next question. Members of the board of directors of Security Team have received the following cperating income data for the year ended March 31, 2018: EEB (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 $81,000 and decrease fixed seling and administrative expenses by $15,000 Read the requirements. Total Variable Costs Contribution Margin Fixed Costs: Manufacturing Selling and Administrative Total Fixed Costs 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 Team drops the industrial systems product line, as shown in Requirement 1. This demonstrates that the differential analysis approach in Requirement 1 yields Choose from any list or enter any number in the input fields and then continue to the next question. I result as the longer approach in Requirement 2 that compares total operating income under the two alternatives. Data Table Members of the board of directors of Security Team have received the following operating income data for the EEB (Click the icon to view the operating income data.) industrial Security Team Income Statement For the Year Ended March 31, 2018 Requirements Product Line Industrial Household Systems Systems 1. Prepare a differential analysis to show whether Security Team should drop the industrial systems product line Prepare contribution margin income statements to show Security Check'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 2. Total Net Sales Revenue S 300,000 S 330,000 $ 630,000 Cost of Goods Sold 3. What have you leamed from the comparison in Requirement 2? Variable Fixed Total Cost of Goods Sold Gross Profit Selling and Administrative Expenses: 35,000 210,000 245,000 42,000 77,000 63,000 273,000 105,000 350,000 55,000 225,000 280,000 Print Done Security Team Contribution Margin Income Statement For the Year Ended March 31, 2018 Variable 66,000 77,000 143,000 Print Done Choose from any list or enter any number in the input fields and then continue to the next question. Members of the board of directors of Security Team have received the following operating income data for the year ended March 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 $81,000 and decrease fixed selling and administrative expenses by $15,000 Read the requirements 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.) in operating income Requirement 2. Prepare contribution margin income statements to show Security Check'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 alternatves' income numbers to your answer to Requirement 1. (Use parentheses or a minus sign for an operating loss.) Security Team Contribution Margin Income Statement For the Year Ended March 31, 2018 March 3 Choose from any list or enter any number in the input fields and then continue to the next question. Members of the board of directors of Security Team have received the following operating income data for the year ended March 31, 2018: EEB (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 $81,000 and decrease fixed selling and administrative expenses by $15,000 Read the requirements Security Team Contribution Margin Income Statement For the Year Ended March 31, 2018 Totals With Totals WithoutChange if Industrial Industrial Systems Systems Is Dropped Industrial Systems Net Sales Revenue Variable Costs: Manufacturing Selling and Administrative Total Variable Costs Contribution Margin Fixed Costs: Choose from any list or enter any number in the input fields and then continue to the next question. Members of the board of directors of Security Team have received the following cperating income data for the year ended March 31, 2018: EEB (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 $81,000 and decrease fixed seling and administrative expenses by $15,000 Read the requirements. Total Variable Costs Contribution Margin Fixed Costs: Manufacturing Selling and Administrative Total Fixed Costs 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 Team drops the industrial systems product line, as shown in Requirement 1. This demonstrates that the differential analysis approach in Requirement 1 yields Choose from any list or enter any number in the input fields and then continue to the next question. I result as the longer approach in Requirement 2 that compares total operating income under the two alternatives. Data Table Members of the board of directors of Security Team have received the following operating income data for the EEB (Click the icon to view the operating income data.) industrial Security Team Income Statement For the Year Ended March 31, 2018 Requirements Product Line Industrial Household Systems Systems 1. Prepare a differential analysis to show whether Security Team should drop the industrial systems product line Prepare contribution margin income statements to show Security Check'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 2. Total Net Sales Revenue S 300,000 S 330,000 $ 630,000 Cost of Goods Sold 3. What have you leamed from the comparison in Requirement 2? Variable Fixed Total Cost of Goods Sold Gross Profit Selling and Administrative Expenses: 35,000 210,000 245,000 42,000 77,000 63,000 273,000 105,000 350,000 55,000 225,000 280,000 Print Done Security Team Contribution Margin Income Statement For the Year Ended March 31, 2018 Variable 66,000 77,000 143,000 Print Done Choose from any list or enter any number in the input fields and then continue to the next