- X Data Table Safety Place Income Statement For the Year Ended May 31, 2018 Product Line Industrial Household Systems Systems Total Net Sales Revenue $ 320,000 $ 320,000 $ 620,000 Cost of Goods Sold: Variable 33,000 220,000 49,000 66,000 82,000 286,000 Fixed Total Cost of Goods Sold 253,000 115,000 368,000 Gross Profit 47,000 205,000 252,000 Print Done ci Data Table - Net Sales Revenue $ 300,000 $ 320,000 $ 620,000 Cost of Goods Sold: Variable 33,000 220,000 49,000 66,000 82,000 286,000 Fixed Total Cost of Goods Sold 253,000 115,000 368,000 47,000 205,000 252,000 Gross Profit Selling and Administrative Expenses: Variable 17.000 63,000 38,000 71,000 29,000 134,000 67,000 Fixed Total Selling and Administrative Expenses 101,000 100,000 201,000 $ Operating Income (Loss) (54,000) $ 105,000 $ 51,000 Print Done Members of the board of directors of Safety Place 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 statyto determine whether the company should drop theine Company accountants estimate that dropping industrial systems wil decrease fed cost of goods sold by $81,000 and decrease find soling and administrative expenses by $12.000 Read the requirements Requirement 1. Prepare a differential analysis to show whether Safety Place thould drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.) in operating income Members of the board of directors of Safety Place 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 dropping industrial systems will decrease fixed cost of goods sold by $81,000 and decrease fixed seling and administrative expenses by $12,000. Read the requirements For the Year Ended May 31, 2018 Totals With Totals Without Change if Industrial Industrial Systems Industrial Systems Systems Is Dropped Net Sales Revenue Variable Costs: Manufacturing Selling and Administrative Total Variable Costs Contribution Margin Members of the board of directors of Safety Place have received the following operating income data for the yoar onded May 31, 2018 (Click the icon to view the operating incomo 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 dropping industrial systems will decrease fixed cost of goods sold by $81,000 and decrease fixed selling and administrative expenses by $12,000. Read the requirements Fixed Costs Manufacturing Selling and Administrative Total Fixed Costs Operating Income (Loss) Requirement 3. What have you learned from the comparison in Requirement 2
