PLEASE SOLVE THE REAL QUESTION LIKE THE EXAMPLE GIVEN. THANK YOU,

350 P25-23A (similar to) Question Help Members of the board of directors of Security Team have received the following operating income date 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 syslerne will decrease fixed cost of goods sold by $82.000 and decrease fixed selling and administrative expenses by $11,000. Read the requirements Requirement 1. Prepare a differential analysis to show whether Security Team should drop the industrial systems product line. (UBe parentheses or a minus sign to enter decreases to profita. Exnocled decenas in revenus S (260,000) Expecled decrease in total variable costs $ 102,000 Exnold decrease in fixed costs 93,000 EXAMPLE 195.000 Expected decrease in total costs Expected decrease in operating Income S (155.000) Requirement 2. Prepare contrbution margin income statements to show Security Team's total operating Income under the two altemstwes: a) with the industrial systems line and (b) without the ine. Compare the difference between the two alternatives' Income numbers to your answer to Requirement 1. (Use parentheses or a minus sign for an operating loss.) Security Team Contribution Margin Income Statement For the Year Ended May 31, 2018 Totals With Totals Without Change if Industrial Industrial Systems Industrial Systems Systems Is Dropped Net Sales Revenue 720.000's 370,000 $ Variable Costs Manufacturing 87.000 48,000 39,000 72,000 63,000 Selling and Administrative Total Variable Casts 222.000 120,000 102.000 Contribution Margin 498.000 250,000 248,000 Fixed Coats: $ 135.000 Requirement 2. Prepare contribution margin income statements to show Security Team'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. (Use parentheses or a minus sign for an operating loss.) Security Team Contribution Margin Income Statement For the Year Ended May 31, 2018 Totals With Totals Without Change if Industrial Industrial Systems Industrial Systems Systems Is Dropped $ 720,000 $ 370,000 $ 350,000 Net Sales Revenue Variable Costs: Manufacturing 39,000 87,000 135,000 48,000 72,000 EXAMPLE Selling and Administrative 63,000 Total Variable Costs 222,000 120,000 102,000 Contribution Margin 498,000 250,000 248,000 Fixed Costs: Manufacturing 304,000 63,000 222,000 52,000 274,000 82,000 11,000 Selling and Administrative 367,000 Total Fixed Costs 93,000 131,000 $ (24,000) $ 155,000 Operating Income (Loss) Requirement 3. What have you learned from the comparison in Requirement 2? Data Table btir Security Team Income Statement For the Year Ended May 31, 2018 Product Line Co Industrial Household Systems Systems Total 350,000 $ 370,000 $ 720,000 Net Sales Revenue $ Cost of Goods Sold: Variable 87,000 39,000 240,000 48,000 64,000 Fixed 304,000 Total Cost of Goods Sold 279,000 112,000 391,000 Gross Profit 71,000 258,000 329,000 Selling and Administrative Expenses: Variable 63,000 38,000 72,000 25,000 135,000 63,000 Fixed Total Selling and Administrative Expenses 101,000 97,000 198,000 $ (30,000) $ 161,000 $ 131,000 Operating Income (Loss) EXAMPLE Print Done Requirements 1. Prepare a differential alysis to show whether Security Team should drop the industrial systems product line. 2. Prepare contribution margin income statements to show Security Team'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? Question Help P25-23A (similar to) Members of the board of directors of Security Team have received the folosing operating income data for the year ended Way 31, 2018 Click the loon to view the operating income cata. Members of the board are surprised that the industrial systems product line is not profilable. They cornmission a study to celermine whether the company should drop the line. Company accountants estimate that dropping industrial systems wil decrease lixed cost of goods sold by $32.000 and decrease foedseling and administrave expenses by $12,000. Read the requirements Requirement 1. Prepare a cifferential analysis to show whether Security Team should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profit.) Expected decrease in reveries A Data Table Expected decrease in total variable costs REAL REAL REAL: PLEASE SOLVE LIKE EXAMPLE Exnncted doccase in fixnd coats Exnected decrease in total costs Expected decrease in operating in corile Security Team Income Statement For the Year Ended May 31, 2018 Product Line Industrial Household Systeme Systems Total S 300 OVO S 320.000 $ 520,000 Requirements Net Sales Revenue Cost of Goods Sold Variable 35.000 1. Prepare a differential analysis to show whecher Security Tear shoule drop the industrial Systems product line. 2. Prepare conilbution margin icerie slaternents to show Securily Tear's laluperalirg income under the two alteratives. (a) with the industrial systems ine 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? 43,000 66.000 78,000 306,000 Fixed 240) OCO 275,000 109,000 384,000 25,000 211.000 236,000 Print Dane Total Cost of Goods Sold Gross Profit Aussion Selling and Administrative Expenses Variable Fixed 68.000 40,000 77,000 21.000 143,000 61,000 106,000 98.000 Total Salling and Administrative Expenses 204.000 Choose from any list or enter any number in the input fields and then click Check Answer. S (81,000) S 113,000 $ 32,000 Operating Income Lee) ? parts 2 2 remaining - Clear All Check