Points: 0 of 5 Members of the board of directors of Security System have received the following operating income data for the year ended May 31, 2024: Save (Click the icon to view the operating income data.) goods sold by $82,000 and decrease fixed selling and administrative expenses by $15,000. 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 Read the requirements. Requirement 1. Prepare a differential analysis to show whether Security System should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.) X hy lin operating income Requirements 1. Prepare a differential analysis to show whether Security System should drop the industrial Expected decrease systems product line. X Prepare contribution margin income statements to show Security System's total operating Expected increase 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. Security System 3. What have you learned from the comparison in Requirement 2? Income Statement For the Year Ended May 31, 2024 Product Line Print Done Industrial Household Systems Systems Total Net Sales Revenue 300,000 $ 310,000 $ 610,000 Cost of Goods Sold: Variable 33,000 43,000 76.000 230.000 68,000 298,000 Fixed 263,000 111,000 374,000 Total Cost of Goods Sold 199,000 236,000 Gross Profit 37,000 Selling and Administrative Expenses: 61,000 76,000 137,000 Variable 38,000 21,000 59,000 Fixed 99,000 97.000 196.000 Total Selling and Administrative Expenses (62,000) $ 102,000 $ 40,000 Operating Income (Loss) Clear all Check answer his Demodocs exam