- Requirements 1. Prepare a differential analysis to show whether Safety Point should drop the industrial systems product line. 2. Prepare contribution margin income statements to show Safety Point'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. 3. What have you learned from the comparison in Requirement 2? Members of the board of directors of Safety Point 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 industrial systems will decrease fixed cost of goods sold by $82,000 and decrease fixed selling and administrative expenses by $11,000 Read the requirements Requirement 1. Prepare a differential analysis to show whether Safety Point should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.) in operating income - Data table Safety Point Income Statement For the Year Ended May 31, 2024 Product Line Industrial Household Systems Systems Total $ 300,000 $ 360,000 $ 660,000 Net Sales Revenue Cost of Goods Sold: Variable 39,000 240,000 49,000 64,000 88,000 304,000 279,000 113,000 392,000 Fixed Total Cost of Goods Sold Gross Profit Selling and Administrative Expenses: Variable 21,000 247,000 268,000 69,000 39,000 75,000 24,000 144,000 63,000 Fixed 108,000 Total Selling and Administrative Expenses 99,000 207,000 (87,000) $ 148,000 $ 61,000 Operating Income (Loss)