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Requirement 1. Prepare an incremental analysis to show whether Securty Force should dsoontinue the industrial systems product line. Requirement 2. Prepare contribution margin income statements
Requirement 1. Prepare an incremental analysis to show whether Securty Force should dsoontinue the industrial systems product line. Requirement 2. Prepare contribution margin income statements to show Securty Force's total operating income under the two aternatives: (a) wth the industrial systems line and (b) without the line. Compare the dillerence 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 dscontinued. (Use parentheses or a minus sign for an operating loss.) What have you leamed from this comparison? The operating income ditlerence calculated on the total analysis of discontinuing a product line (2) the expected decrease in operating income if Securty Force discontinues the industrial systems product line, as shown in Requiement 1. This demonstrates that the incremental analysis approach in Requivement 1 yields (3 results as the longer approach in Requirement 2 that compares botal operating income under the two alkernatives. 1. Prepare an incremental analysis to show whether Security Forde should discontinue the industrial systems product line. 2. Prepare contrbution margin income statements to show Security Force's total operating income under the two altematives: (a) with the industrial systems line and (b) without the ine. Compare the dillerence between the two altematives' income numbers to your answerts Requirement 1. What have you learned from this comparison
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