Save Members of the board of directors of Security One have received the following operating income data for the year just ended: (Click the icon to view the operating income data.) Members of the board are surprised that the industrial systems product line is losing money. They commission a study to determine whether the company should discontinue the line. Company accountants estimate that discontinuing the industrial systems line will decrease fixed cost of goods sold by $82,000 and decrease fixed marketing and administrative expenses by $16,000. - X Sales revenue Variable expenses: Cost of goods sold Marketing and administrative expense Total variable expenses Contribution margin Fixed expenses Cost of goods sold Marketing and administrative expense Total fixed expenses Operating income (loss) Data table A 1 2 Totals With Industrial Systems Totals Without 3 Industrial Systems 4 B C D Security One Product Line Contribution Margin Income Statement For the Year 6 Product lines Industrial Household Systems Systems Company Total 7 Sales revenue $ 280,000 $ 310,000 $590,000 8 Less cost of goods sold: 9 Variable 10 Fixed 11 Gross profit 37,000 39,000 76,000 $ 220,000 23,000 $ 60,000 280,000 211,000 $ 234,000 12 Less marketing and administrative expenses: 13 Variable 14. Fixed 15 Operating income (loss) $ 69,000 40,000 (86,000) $ 72,000 141,000 22,000 117,000 $ 62,000 31,000