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Pequirements 1. Presare ati inewtier is enaysis io thow weefer Soority Fint st fom this compertion? bereasian? Witet hart pou isurted frm the cenperwan? Data

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Pequirements 1. Presare ati inewtier is enaysis io thow weefer Soority Fint st fom this compertion? bereasian? Witet hart pou isurted frm the cenperwan? Data table decrease in operating income if Security First discontinues the industrial systems product line, as shown in Requirement in Requirement 2 that compares total operating income under the two alternatives: Members of the board of directors of Security First have received the following operating income data for the year just ended: (Cick the icon to 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 discontinue the ine. Company accountants estimate that discontinuing the industrial systems line will decrease fixed cost of goods soid by $77, ooo and decrease fixed marketing and administrative expenses by $11,000. Requirement 1. Prepare an incremental ahalyes to show whether Security Finst should discontinue the industrial systems product ing. Data table Requirement 2. Prepare contribution margin income statements to show Security First's total operating income under the two alternati comparison? Begin by preparing the statements with and without the industrial systems line, then prepare the contribution margin income statement s The operating income difference calculated on the total analysis of discontinuing a product line This demonstrates that the incremental analysis approach in Requirement 1 yields the expected decrease in opera results as the longer approach in Requirement 2t tal operating income under the two alternatives: (a) with the industrial systems line and (b) without the line. Compare the difference between the twc re the contribution margin income statement showing the decrease if the industrial systems line is discontinued. (Use parentheses or a minus sign for roduct line the expected decrease in operating income if Security First discontinues the industrial systems product line, as shown in Requirement results as the longer approach in Requirement 2 that compares total operating income under the two alternatives

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