requirement 2 and 3 answees

Members of the board of director of Security One have received the wing operating condition the year for unded 1. Praewr Click the icon to view the operating income) Members of the board wa uprised that the industrial production is in the com 2. paar Mudy ostamine whether the company has the Company courte INC wwwy dustrial em decreased out of goods sold by $79.000 defe inistrative expenses by 55.000 Requirement Propeco main costume between the two what we want you to get what you Blugin by puring the water and when we are minution for operating foms.) Tocal Analysis of god Tos Systems TO With Wys Sy. Do Sales V Contato expense pe margin income statements to show Security two alternatives: (a) with the industrial systems in and (b) with between the two alternatives income numbers to your answer to from this comparison? me are surprised that the industrial systems product line is losing money. 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 goods sold by $79.000 and decrease forced marketing and administrative expenses by $15,000. Totals With Industrial Totals Without Decrease of Industrial Systems Industrial Systems Systems Is Dropped Sales revenue 730000 370690 360000 Variable expenses 30000 45000 35000 Cost of goods sold Marketing and administrative expense Total variable expenses Contribution margin Food expenses Cost of goods sold Marketing and administrative expense Total fixed expenses We industrial systems product line is losing money. They como a determine whether the company should drop the line Company accountants estimate that dropping al systems will decrease foxed cost of goods sold by 579.000 and decrease fed marketing and rative expenses by $15,000 2. Prepare combustion comes Secunder the two alternatives. (a) with the indused the Congo between the two mais income to your Way from this comparison al variable expenses ution margin expenses stof goods sold keting and administrative bense cal fixed expenses ting income foss) have you loomed from this comparison? Derating income difference calculated on the total analysis of dropping a productie cement1 demonstrates that the incremental analysis approach in Requirements the expected decrease in operating income Security One day mo as the longer approach in Recurente compresor actors of Security One have red More info - er Security One should drop the industrial systemu pro the operating income data.) surprised that the industrial syste the company should drop the ease fixed cost of goods sold by $15,000 Industrial Household Systems Systems Total $ 360,000 $ 370,000 5 730,000 to show Security One's total operating in der Fine and without the line Compare the difference Lo your answer in Requirement? What have you are Sales revenue Cost of goods sold Variable . 35,000 $ 230,000 es Fixed 45.000 5 80.000 70.000 300.000 380.000 265.000 115.000 95.000 255.000 350,000 Total cost of goods sold Gross profit Marketing and administrative expenses Variable Istrative 2.000 39.000 79000 2700 14 od 56 000 101000 10. Od 27000 Fixed Total marketing and administrative expenses Operating income foss) (60) 149 $ 143,000 om this comparison? rops the industrial product linesh erence calculated on the total and jating income under the treativet Print Done e incremental analysis approach Next