Members of the board of directors of Security Check 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 syster decrease fixed cost of goods sold by $80,000 and decrease fixed selling and administrative expenses by $12,000. Read the requirements. Data Table Requirement 1. Prepare a differential analysis to show whether Security Check should drop the industrial systems product line. ( Security Check Income Statement For the Year Ended May 31, 2018 Product Line Industrial Household in operating income Systems Systems Total Net Sales Revenue $ 360,000 $ 380,000 $ 740,000 Cost of Goods Sold: Variable 37,000 47,000 84,000 260,000 63,000 323,000 Fixed 297,000 110,000 407,000 Total Cost of Goods Sold Gross Profit 63,000 270,000 333,000 Selling and Administrative Expenses: Choose from any list or enter any number in the input fields and then click Check Answer. Variable 64,000 137,000 73,000 44,000 26,000 70,000 Fixed

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.