q8q1

1. Prepen in wis to show what 123 Securty should decontinue the industrial product line 2. Prepare arginine emer to show 123 ore Operating income under the twenties with some and thene Compare anche income numbers to your www to Red What have you lamed from compar? Total c D 1 123 Security 2 Product Line Contribution Marylin Income Statement 3 For the Year Product lines Industrial Household Company 6 Systems Systeme 7 be revenue S 340.000 0.000 700.000 Los cost of goods sold 9 Variable 34.000 45,000 77000 10 Food 260.000 60.000 120.000 11 Cross prot 5 46.000 257.000 300.000 12 Les marketing and administrative expenses 13 Variable 62.000 71.000 133.000 14 Fixed 45.000 21,000 56,000 $ 15. Operating income foss) (01.000) 165.000 $104,000 Print Done ht mert towing the docume to our system in decontrueUn prematur Members of the board of directors of 123 Security have received the following operating income data for the year just ended: (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 $85,000 and decrease fixed marketing and administrative expenses by $15,000. Read the requirements Requirement 1. Prepare an incremental analysis to show whether 123 Security should discontinue the industrial systems product line. Incremental Analysis for Discontinuation Decision Total Contribution margin lost if Industrial Systems is discontinued Less: Fixed cost savings if Industrial Systems is discontinued Operating income if Industrial Systems is discontinued Requirement 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? Begin by preparing the statements with and without the industrial systems line, then prepare the contribution margin income statement showing the decrease if the industrial systems line is discontinued. (Use parentheses or a minus sign for an operating loss.) 123 cm Total Analysis of Discontinuing You wa TWO tym wym con los Total ansapere Contacte F Gusto readore123 The program Magrement company account estimating the direct Total Analysis of Discontinuing a Product Line Total With industrial Systems Total Without Industrial Systems Difference Seven Marble Costa de sold Manting and mine You are Cortion Custofa Maratgan para You Operating income Watane you latum companion The porn como de como facing Rowenient dagens in one