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Members of the board of directors of Security System have received the following operating income data for the year ended May 31, 2018: (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 $15,000. Read the requirements - X Data table 8 Security System Requirement 1. Prepare a differential analysis to show whether Security System should drop the industrial systems product line. Us Expected decrease in revenues (350000) Expected decrease in total variable costs Expected decrease in fixed costs 95000 Expected decrease in total costs Income Statement For the Year Ended May 31, 2018 Product Line Industrial Household Systems Systems Total $ 350,000 $ 360,000 $ 710,000 Net Sales Revenue Cost of Goods Sold: Variable Expected decrease in operating income 48,000 33,000 240,000 81,000 304,000 64,000 - X 273,000 Requirements 112,000 385,000 248,000 325,000 77,000 Fixed Total Cost of Goods Sold Gross Profit Selling and Administrative Expenses: Variable Fixed 69,000 43,000 72,000 22,000 141,000 65,000 1. Prepare a differential analysis to show whether Security System should drop the industrial systems product line. 2. Prepare contribution margin income statements to show Security System'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? 112,000 Total Selling and Administrative Expenses Operating Income (Loss) 94,000 206,000 154,000 $ 119,000 $ $ (35,000) $ Help me