80.2K

Verified Solution

Link Copied!

Requirements 1. Prepare an incremental analysis to show whether 123 Security should discontinue the industrial systems product line. 2. Prepare contribution margin income statements to show 123 Security'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 . What have you learned from this comparison? equirement 1. Prepare an incremental analysis to show whether 123 Security should discontinue the industrial systems product line. Requirement 2. Prepare contribution margin income statements to show 123 Security's total operating income under the fwo allernatives: (a) with the indestral systems line and (b) without the line. Compare the difference between the two alternatives' income nurnbers to your answer to Requirement 1 . What have you learned from this comparison? Begin by preparing the statements with and without the industrial systems line, then prepare the contribution margin income statoment showing the decrease if the industrial systems line is discontinued. (Use parentheses or a minus sign for an operating loss.) What nave you marrivu The operating income difference calculated on the total analysis of discontinuing a product line the expected decrease in operating income The operating income difference calculated on the total analysis of discontinuing a product line the expected decrease in operating income if 123 Security discontinues the industrial systems product line, as shown in Requirement 1. This dernonstrates that the incremental analysis approach in Requirement 1 yield 5 results as the longer approach in Requirenient 2 thul compates in operating income under the two ahematives

Answer & Explanation Solved by verified expert

See Answer