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Data Table 123 Security Product Line Contribution Margin Income Statement For the Year Product lines Industrial Household Company Systems Systems Total Sales revenue 320,000 S 370,000 S 690,000 Less cost of goods sold 47.00083.000 67,000307.000 Variable 36,000 240,000 Fixed Gross profit 44,000 S 256,000 S 300,000 Less marketing and administrative expenses: Variable 76,000 145,000 82.000 S(63,000) S156.000 S 93,000 69,000 38.000 Fixed 24,000 Operating income (loss) his Question: 1 pt 43 of 3 (2 complete) This C Members of the board of directors of 123 Security have received the following operating income data for the year just ended Company accountants estimate that discontinuing the line will decrease foced cost of goods sold by $81,000 marketing and administrative expenses by $17,000 Click the icon to view the operating income data.) Members of the board are surprised that the industrial systems product line Read the requirements is losing money They commission a study to determine whether the company should discontinue the line. Requirement 1. Prepare an incremental analysis to show whether 123 Security should discontnue the industrial systems product line Total Contribution marpin lost if industrial Systems is discontinued Less Fixed cost savings if industrial Systems is discontinued Operating income Industrial Systems is discontinued Requirement 2 Prepare contribution margin income statements to show 123 Security's total operating income under the two altemat the industrial systems line and (b without the ine Compare the difference between the two alternatives income numbers to your answe Requirement 1 What have you leamed from this comparison? Begin by preparing the statements with and without the industrial systems ine. then prepare the contribution margin income statement s decrease it the industrial systems tine is discontinued. (Use parentheses or a minus sign for an operating loss 123 Security Total Analysis of Discontinuing a Product Line Totals With Totals Without ndustriaf Systems Industrial Systems Difference Cost of goods sold Total variable expenses Choose from any list or enter any number in the input fields and then continue to the next question 825 PM RENG317/219 embers of the board of directors of 123 Secunity have received the owing operating income data for the year just ended Company accountants estimate that discontinuing the industrial sy ine will decrease fixed cost of goods sold by $81.000 and decreas marketing and administrative expenses by $17,000 (Click the icon to view the operating income data ) embers of the board are surprised that the industrial systems product line Read the requirements losing money. They commission a study to determine whether the mpany should discontinue the line equirement 2. Prepare contribution margin income statements to show 123 Seourity's e industrial systems line and (b) without the line. Compare the difference between the two alternatives income numbers to your answer to equirement 1. What have you leamed from this comparison? total operating income under the two alternatives: (a) wit egin by preparing the statements with and without the industrial systems line, then ecrease if the industrial systems line is discontinued. (Use parentheses or a minus sign for an operating loss.) prepare the contribution margin income statement showing th 123 Security Total Analysis of Discontinuing a Product Line Totals With Totals Without Industrial Systems Industrial Systems Difference Sales revenue Variable expenses: Cost of goods sold Marketing and administrative expense Total variable expenses Contribution margin Foxed expenses: Cost of goods sold Marketing and administrative expense Total fxed expenses Operating income (loss) Choose from any list or enter any number in the input fields and then continue to the next question. ibed uel ue noustral systems product line Read the requirements money. They commission a study to determine whether the should discontinue the line. Totals With Totals Without Industrial Systems Industrial Systems Difference enue expenses of goods sold eting and administrative expense variable expenses ion margin penses of goods sold eting and administrative expense fixed expenses g income tloss) e you learned from this comparison? rating inoome difference calculated on the total analysis of discontinuing a product line f123 Security discontinues the industrial systems product line, as shown in Requirement 1 the expected decrease onstrates that the incremental analysis approach in Requirement 1 yields s total operating income under the two alternatives results as the longer approach in Requin different from any list or enter any number in the input fields and then continue the same marketing and administrative expenses ating income data.) that the industrial systems product line Read the requirements. a study to determine whether the e. Totals With Totals Without Requirements 1. Prepare an incremental analysis to show whether 123 Security should discontinue the industrial systems product line 2. Prepare contribution margin income statements to show 123 Security'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 learned from this comparison? Print Done V the expected ence calculated on the total analysis of discontinuing a product ine ontinues the industrial systems product line, as shown in Requirement 1 results as the longer approach incremental analysis approach in Requirement 1 yields ncome under the two alternatives nter any number in the input fields and then continue to the next question ENG