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0 Members of the board of directors of Security Team have received in opring income data for the your and March 31, 2018 (Click the icon to the operating con data Members of the board are surprised that the industrial productes e profitable. They can ay where compte the ine. Company accountants estimate that dropping indem widecreme fecond goods sold by 1.000 de edad administrative expenses by 515,000 Read the counts Requirement 1. Prepare a differential analysis to show whether Securilly Teams drop the Industrial product in para for decreases to pro) In operating income Choose from any list or enter any number in the fields and men click Check Answer 2 parts Clear All Check Meubers of the board are su the line. Company accountan administrative expenses by S Read the requirements the company should do redan 10 Requirement 1. Prepare a di enter decreases to profits.) Security Team Income Statement For the Year Ended March 31, 2018 Product Line Industrial Household Systems Systems Total 5 300,000 $ 330,000 5 630 000 Net Sales Revenue Cost of Goods Sold Variable 35.000 210,000 42.000 63,000 77000 273.000 Fixed in op 245.000 Total Cost of Goods Sold 105 000 350,000 Dr 30.A 20 Te Sales revenue Mitte Company accountan administrative expenses by S Read the requirements Cost of Goods Sold Variable JU the company should trop bedeling and Fixed Requirement 1. Prepare a di enter decreases to profits) 35,000 210,000 42.000 63.000 T7 000 273.000 245.000 105.000 350 000 hesramnu sign to 55.000 225.000 280 000 Total Cost of Goods Sold Gross Profit Solling and Administrative Expenses Variable Fixed Total Selling and Administrative Expenses Operating Income (Loss) 66.000 39.000 77.000 28.000 105.000 143 000 67.000 in op 105 000 210,000 (50,000) 120,000 $ 70,000 oose from any list or ente MELULITID nistrative expenses by 0 Requirements the requirements the company should xseling and Erement 1. Prepare a decreases to profits.) beses or minus ska 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 Check'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 3. What have you learned from the comparison in Requirement 2

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