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Roquirement 1. Prepare an incremental analysis to show whether Security Forde should discontinue the industrial systems product line. Roquirement 2. Prepare contrbution margin inoome statements
Roquirement 1. Prepare an incremental analysis to show whether Security Forde should discontinue the industrial systems product line. Roquirement 2. Prepare contrbution margin inoome statements to show Security Forde's total operating income under the two altematives (a) with the industrial systems ine and (b) without the line. Compare the difference between the two albernatives' income numbers to your answer to Requirement 1 . What have you learned from this comparison? Begin by preparing the statements whth and without the industrial systems line, then prepare the contrbution margin income statement showing the decrease if the industrial systems line is discontinued. (Use parentheses or a minus sign for an operating loss.) What have you learned from this comparison? The operating income dfference calculated on the total analysis of discontinuing a product line (2) the expected decrease in operating income if Security Force discontinues the industrial systems product line, as shown in Requivement 1. This demonstrates that the incremental analysis approsch in Requiement 1 yields (3) results as the longer approach in Requbement 2 that compares total operating income under the two alternatives. 2: Requirements 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 dilference between the two altematives' income numbers to your answer to Requirement 1. What have you learned from this comparison
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