Members of the board of directors of

SecurityCheck

have received the following operating income data for the year ended May31,2024:

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(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

$80,000

and decrease fixed selling and administrative expenses by

$12,000.