- X Data Table security ream Income Statement For the Year Ended May 31, 2018 Product Line Industrial Household Total Systems Systems 370,000 670.000 300,000 $ Net Sales Revenue S Cost of Goods Sold: Variable 33,000 49,000 82,000 250,000 89,000 319,000 Fixed 283,000 118,000 401.000 Total Cost of Goods Sold Gross Profit 252,000 17,000 289,000 Selling and Administrative Expenses: Variable 69,000 78,000 145,000 40,000 27,000 67.000 Fixed 109,000 103,000 212,000 Total Selling and Administrative Expenses (92,000) $ 149,00057,000 Operating Income (Loss) Print Done - X Requirements 1 Prepare a differential analysis to show whether Security Team should drop the industrial systems product line. 2. Prepare contribution margin income statements to show Security Team'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 altematives' income numbers to your answer to Requirement 1 What have you learned from the comparison in Requirement 2? 3. Print Done Requirement 1. Prepare a differential analysis to show whether Security Team should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.) S (300,000) Expected decrease in revenues Expected decrease in total variable costs 102.000 95.000 Expected decrease in fixed costs 197,000 Expected decrease in total costs S(103,000) Expected decrease in operating income Requirement 2. Prepare contribution margin income statements to show Security Team's totsal 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. (Use parentheses or a minus sign for an operating loss.) Security Team Contribution Margin Income Statement For the Year Ended May 31, 2018 Change if Industrial Totals With Totals Without Industrial Systems Industrial Systems Systems Is Dropped Net Sales Revenue Variable Costs: Security Team Contribution Margin Income Statement For the Year Ended May 31, 2018 Change if Industrial Totals With Totals Without Industrial Systems Industrial Systems Systems Is Dropped Net Sales Revenue Variable Costs: Manufacturing Selling and Administrative Total Variable Costs Contribution Margin Fixed Costs: Manufacturing Selling and Administrative Total Fixed Costs Opersting Income (Loss) Enter any number in the edit fields and then click Check