Requirement 2. Prepare contribution margin income statements to show Control One's total operating income under the two alternatives: (a) with the industrial systems tine and (b) without the line. Compare the difference between the two alternatives income numbers to your answer to Requirement 1 (Use parentheses or a minun sign for an operating loss.) Control One Contribution Margin Income Statement For the Year Ended May 31, 2024 Totals With Totals Without Change if Industrial Industrial Systems Industrial Systems Systems Is Dropped Net Sales Revenge Variable Costs Manufacturing Selling and Administrative Total Variable Costs Contribution Margie Fixed Costs Manufacturing Selling and Administrative Total Fixed Costs Operating Income (L03) Members of the board of directors of Control One have received the following operating income data for the year ended May 31, 2024. Click the icon to view the operating income data.) 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 industria systems will decrease fixed cost of goods sold by $81,000 and decrease fixed selling and administrative expenses by $12,000 Read the requirements Requirement 1. Prepare a differential analysis to show whether Control One should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.) (310,000) $ Expected decrease in revenues Expected decrease in total variable costs Expected decrease in fixed costs Expected decrease in total costs 109,000 93,000 Expected decrease in operating income 202.000 (108,000 Requirement 2. Prepare contribution margin income statements to show Control One'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' ncome numbers to your answer to Requirement 1. (Use parentheses or a minus sign for an operating loss.) Change if Industrial Systems Is Dropped Control One Contribution Margin Income Statement For the Year Ended May 31, 2024 Totals With Totals Without Industrial Systems Industrial Systems Net Sales Vanable Cous Manufacturing Selling and Administrative Total Vara Costa Contribution Margie Fond Conte Manufacturing Segund Administrative Todo Operating com) Control One Income Statement For the Year Ended May 31, 2024 Product Line Industrial Household Systems Systems Total $ 310,000 $ 320,000 $ 630,000 Net Sales Revenue Cost of Goods Sold: Variable 40,000 49,000 Fixed 89,000 306,000 240,000 66,000 Total Cost of Goods Sold 280,000 115,000 395,000 Gross Profit 30,000 205,000 235,000 Selling and Administrative Expenses: Variable 69,000 70,000 Fixed 139,000 64,000 39,000 25,000 Total Selling and Administrative Expenses 108,000 95,000 203,000 Operating Income (Loss) $ (78,000) $ 110,000 $ 32,000