Members of the boatd of directors of Securty Team have received the following operating income data for the year lust ended (Cick the icon to view the operating incoene data) Members of the board are surpised that the industial systems product line is losing money. They cormission a study to detornine whether the company should escontinue the line Company accountants estimate that discontinuing the industrial systems line decrease frod cost of goods sold by $85.000 and decrease fired marketing administrative expenses by $14,000 Read the requinments Members of the board of dirsctors of Security Team have received the following operating theome drta for the year fust ended (Clid the kcon to vew the oparating income data) Members of the board are surprised that tfe insuthtal sistene produd the is losing tie line Cempany accountunts entimate that fiscontinuing the industrial systems line wil dectesse fied cout of goods sold by 586000 and decresse fued marketing and adinhative expenies by $14000 Rend the Requirements 1. Prepare an incremental analysis to show whether Security Team should discontinue 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 systems line and (b) without the line. Compare the difference between the two alternatives' income numbers to your answer to Requirement 1 . What have you leamed from this comparison? What hove yoa leamed from this comporison? the expected decrose in operating inconse if Security Toam discontinuns the industrial systems product line, as shown in Requrement I results as the longet approach in fiequiroment 2 that compares fotal operasing income under the the aliematives. Data table Menbers of the bourd of directors of Securty Team hwe received the following opetating hoeme data for the year fust ended [Cick the icon to view the operaling income data) Memben of the bourd are surprised thut the industrial systems product fine is losing money Ther commission a study fo deterrnine whether the conpany should discontinue the line Company accountants eismale that discontinuing the industriat systems line will decrease ficed cost of goods sold by 585000 and decrease fred maketing and adenistrative expenses by $14,000 Read the reguertents Members of the board of drecion of Securty Tean have received the following operating income data for the year just inded [Click the icsh fo vere the operating income data) Memburs of the boatd are suprised that the industrial systems product line is losing money. They commiacion a study to determine wbether the company should discontinue the line Comparry accounlasts esfimate that discoefinuing the industrial sphtems fine wil decreaso ficot cost of goeds sold by $85.000 and deciease Sxed marketing and adninituative eapenses by $14,000 Read the regirements Requirement 1. Propere an incemental andysis to shes whether Socurty Team should sscontinue the industrial wystems product Ine
