I Members of the board of directors of Security Alarms have received the following operating income data for the year ended May 31, 2018 E(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 accountants estimate that dropping industrial systems will decrease fixed cost of goods sold by $83,000 and decrease fixed selling and administrative expenses by $10,000. Read the requirements. Requirement 1. Prepare a differential analysis to show whether Security Alarms should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.) in operating income vill Requirements buc 1. Prepare a differential analysis to show whether Security Alarms should drop the industrial systems product line. 2. Prepare contribution margin income statements to show Security Alarm'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? Data table Security Alarms Income Statement For the Year Ended May 31, 2018 Product Line Industrial Systems Household Systems Total Net Sales Revenue $ 300,000 $ 330,000 $ 630,000 Cost of Goods Sold: Variable 42,000 40,000 240,000 82,000 308,000 Fixed 68,000 Total Cost of Goods Sold 280,000 110,000 390,000 - Data table Cost of Goods Sold: Variable 40,000 82,000 42,000 68,000 240,000 308,000 Fixed 280,000 110,000 390,000 Total Cost of Goods Sold Gross Profit 20,000 220,000 240,000 Selling and Administrative Expenses: Variable 65,000 75,000 21,000 140,000 62,000 41,000 Fixed 106,000 96,000 202.000 Total Selling and Administrative Expenses $ (86,000) $ 124,000 $ 38,000 Operating Income (Loss)