Product Line Contribution Margin Income Statement For the Year Product lines Industrial Household Company Systems Systems Total $ 350,000 $ 380,000 $ 730,000 Sales revenue Less cost of goods sold: Variable 40,000 270,000 40,000 69,000 80,000 339,000 Fixed Gross profit 40,000 $ 271,000 $ 311,000 Less marketing and administrative expenses: Variable 64,000 38,000 Fixed 70,000 20,000 181,000 $ 134,000 58,000 119,000 $ (62,000) $ Operating income (loss) Members of the board of directors of Security First have received the following operating income data for the year just ended: E: (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 $77,000 and decrease fixed marketing and administrative expenses by $11,000. Requirements 1. Prepare an incremental analysis to show whether Security First should discontinue the industrial systems product line. 2. Prepare contribution margin income statements to show Security First'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