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Members of the board of directors of Security Team have received the following operating income data for the year just ended: View the operating income
Members of the board of directors of Security Team have received the following operating income data for the year just ended: View the operating income data. 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 drop the line. Company accountants estimate that dropping industrial systems will decrease fixed cost of goods sold by $86,000 and decrease fixed marketing and administrative expenses by $14,000. read the reauirements Operating Income Data Operating Income Data Required 1.Prepare an incremental 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 alternatives: (a) with the industrial syystems 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 this comparison
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