Requirements 1. Prepare a differential analysis to show whether Security One should drop the industrial systems product line. Prepare contribution margin income statements to show Security 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' income numbers to your answer to Requirement 1. What have you learned from the comparison in Requirement 2? 2. 3. Print Done 1Data Table Security One Income Statement For the Year Ended May 31, 2018 Product Line Industrial Household Systems Systems Total $ 340,000 $ 370,000 $ 710,000 Net Sales Revenue Cost of Goods Sold 39,000 250,000 289,000 51,000 43,000 82,000 64,000 314,000 107,000 396,000 263,000 314,000 Variable Fixed Total Cost of Goods Sold Gross Profit Selling and Administrative Expenses 63,000 38,000 101,000 Variable 70,000 133,000 65,000 97.000 198,000 $ (50,000) S 166,000 $ 116,000 27,000 Fixed Total Selling and Administrative Expenses Operating Income (Loss) PrintDone Members of the board of directors of Security One have received the following operating income data for the year ended May 31, 2018 (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 $84,000 and decrease fixed selling and administrative expenses by $11000. Read the requirements Requirement 1. Prepare a differential analysis to show whether Security One should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.) in operating income