operating ifference be Ign for an o Members of the board of directors of Security Alarms have recelved the following operating income data for the year ended May 31, 2024: (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 $10,000. Read the requirements. Requirement 1. Prepare a differential analysis to show wher Security Alarms should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.) Requirement 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 difforence between the two alternatives' income numbers to your answer to Requirement 1. (Use parentheses or a minus sign for an operating loss.) ended May 31, 2024: (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 $10,000. Read the requirements. alternatives' income numbers to your answer to Requiremht 1. (Use parentheses or a minus sign for an operating loss.) Members of the board of directors of Security Alarms have received the following operating income data for the year ended May 31, 2024: (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 seling and administrative expenses by $10,000. Read the requirements. 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 Alarms drops the industrial systems product line, as shown in Requirement 1. Members of the board of directors of Security Alarms have received the following operating income data for the year ended May 31, 2024: Ift (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 $10,000. Read the requirements. 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 Alarms drops the industrial systems product line, as shown in Requirement 1 . This demonstrates that the differential analysis approach in Requirement f yields result as the longer approach in Requirement 2 that compares total operating income under the two alternatives
