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Please help me solve all requirements Members of the board of directors of Security Systems have received the following operating income data for the year
Please help me solve all requirements
Members of the board of directors of Security Systems have received the following operating income data for the year just ended: (Click 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 line. Company accountants estimate that discontinuing the industrial systems line will decrease fred cost of goods sold by $86,000 and decrease fixed marketing and administrative expenses by $9,000. Read the requirements. Requirement 1. Prepare an incremental analysis to show whether Security Systems should discontinue the industrial systems product line. Requirement 2. Prepare contribution margin income statements to show Security Systems' total operating income under the two altematives: (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 learned from this comparison? Begin by preparing the statements with and without the industrial systems line, then prepare the contribution margin income statement showing the decrease if the industrial systems line is discontinued. (Use parentheses or a minus sign for an operating loss.) Members of the board of directors of Security Systems have recelved the following operating income data for the year just ended: (Click 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 line. Company accountants estimate that discontinuing the industrial systems line will decrease fixed cost of goods sold by $86,000 and decrease fixed marketing and administrative expenses by $9,000. Read the requirements. (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? Begin by preparing the statements with and without the industrial systems line, then prepare the contribution margin income statement Begin by preparing the statements with and without the industrial systems ine, then prepare the contrisulin for an operating loss.) showing the decrease if the industrial systems line is discontinued. (Use parentheses or a minus sign for What have you leamed from this comparison? The operating income difference calculated on the total analysis of discontinuing a product line the expected decrease in operating income if Security Systems discontinues the industrial systems product line, as shown in Requirement 1. This demonstrates that the incremental analysis approach in Requirement 1 yields results as the longer approach in Requiremen 2 that compares total operating income under the two alternatives. Data table Requirements 1. Prepare an incremental analysis to show whether Security Systems should discontinue the industrial systems product line. 2. Prepare contribution margin income statements to show Security Systems' 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 learned from this comparison? of discontinuing a product lif systems product line, as sh pwirement 1 yields s Step by Step Solution
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