Members of the board of drectons of Secunty Atarms have received the foliowing operating income data for the yover onded May 31,2024 Members of the board are surpised that the industral systems product line is not profitable. They conmission a study to determine whether the company should drop the line. Read the requirinents Members of the board of directors of Secunty Alarms hive received the following operating income data for the year ended May 31 , 2024 EF (Click the ican fo viow the operaling ficome dati.) Members of the board are surprised that the industrial systems product line is not profitable. They commission a study to determine whether the compary Company accountants estimate that dropping industrial systems will decrease foxed cost of goods sold by $81,000 and docrease foxed selling and admin. 1. Prepare a differential analysis to show whether Security Alarms should drop the industrial systems product fine. 2. Prepare contribution margin income statements to show Security Alarm'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 Requirement 1. 3. What have you learned from the comparison in Requirement 2 ? Security Alarms ticome Statement For the Year Ended May 31,2024 \begin{tabular}{|c|c|c|c|c|} \hline 1 & \multicolumn{2}{|c|}{ Systems } & Systems & \multirow{2}{*}{710,000Total} \\ \hline Net Sales Revenue & $ & 340,000$ & 370,000$ & \\ \hline \multicolumn{5}{|l|}{ Cost of Goods Sold: } \\ \hline Variable & & 35,000 & 49,000 & 84,000 \\ \hline Fixed & & 240,000 & 66,000 & 306,000 \\ \hline Total Cost of Goods Sold & & 275,000 & 115,000 & 390,000 \\ \hline Gross Profit & & 65,000 & 255,000 & 320,000 \\ \hline \multicolumn{5}{|l|}{ Selling and Administrative Expenses: } \\ \hline Variable & & 66,000 & 75,000 & 141,000 \\ \hline Fixed & & 40,000 & 21,000 & 61,000 \\ \hline Total Selling and Administrative Expenses & : & 106,000 & 96,000 & 202,000 \\ \hline Operating Income (Loss) & $ & (41,000)$ & 159,000$ & 118,000 \\ \hline \end{tabular}