Content Content X P Assignments *Dashboard X P Chapter 10 Exam G 20 mylab.pearson.com/Student/PlayerTest.aspx?testld=254370184¢erwin=yes P Pearson Q Google Docs Google Drive ChatGPT Connect Digital Resources

Content Content X P Assignments *Dashboard X P Chapter 10 Exam G 20 mylab.pearson.com/Student/PlayerTest.aspx?testld=254370184&centerwin=yes P Pearson Q Google Docs Google Drive ChatGPT Connect Digital Resources f... o Outlook C 222 B1 erfaan fadiani 11/27/23 2:29 PM = Test: Chapter 10 Exam Question 1 of 1 This test: 100 point(s) possible This question: 100 point(s) possible Submit test Members of the board of direct (Click the icon to view the X Members of the board are surp Data table ompany she O by $82,000 and decrease fixed X Read the requirements. Requirements Security Alarms Income Statement 1. For the Year Ended May 31, 2024 Prepare a differential analysis to show whether Security Alarms should drop the industrial Requirement 1. Prepare a diff s or a miny systems product line. Product Line 2. Prepare contribution margin income statements to show Security Alarm's total operating income Industrial Household under the two alternatives: (a) with the industrial systems line and (b) without the line. Compare Systems Systems Total the difference between the two alternatives' income numbers to your answer to Requirement 1. Net Sales Revenue $ 350,000 $ 360,000 $ 710,000 What have you learned from the comparison in Requirement 2? Cost of Goods Sold: Variable 40,000 42,00 82,000 in oper Fixed 240,000 66,000 306,000 Print Done Requirement 2. Prepare contr Total Cost of Goods Sold 280,000 108,000 388,000 th the indy your answer to Requirement 1. Gross Profit 70,000 252,000 322,000 Selling and Administrative Expenses: Variable 65,000 71,000 136,000 Fixed 41,000 25,00 66,00 Total Selling and Administrative Expenses 106,000 96,000 202,000 Net Sales Revenue Operating Income (Loss) $ (36,000) $ 156,000 $ 120,000 Variable Costs: Manufacturing Selling and Administrative Print Done Total Variable Costs Contribution Margin Fixed Costs Manufacturing Submit testContent Content X P Assignments *Dashboard X P Chapter 10 Exam G 20 mylab.pearson.com/Student/PlayerTest.aspx?testld=254370184&centerwin=yes P Pearson Q Google Docs Google Drive ChatGPT Connect Digital Resources f... o Outlook C 222 B1 erfaan fadiani 11/27/23 2:29 PM = Test: Chapter 10 Exam Question 1 of 1 This test: 100 point(s) possible This question: 100 point(s) possible Submit test Members of the board of directors of Security Alarms have received the following operating income data for the year ended May 31, 2024: (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 O by $82,000 and decrease fixed selling and administrative expenses by $14,000. Read the tequirements. 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 Requirement 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. (Use parentheses or a minus sign for an operating loss.) Security Alarms Contribution Margin Income Statement For the Year Ended May 31, 2024 Totals With Totals Without Change if Industrial Industrial Systems Industrial Systems Systems Is Dropped Net Sales Revenue Variable Costs Manufacturing Selling and Administrative Total Variable Costs Contribution Margin Fixed Costs: Manufacturing Submit testContent Content X P Assignments *Dashboard X P Chapter 10 Exam G 20 mylab.pearson.com/Student/PlayerTest.aspx?testld=254370184&centerwin=yes P Pearson Q Google Docs Google Drive ChatGPT Connect Digital Resources f... o Outlook C 222 B1 erfaan fadiani 11/27/23 2:29 PM = Test: Chapter 10 Exam Question 1 of 1 This test: 100 point(s) possible This question: 100 point(s) possible Submit test Members of the board of directors of Security Alarms have received the following operating income data for the year ended May 31, 2024: (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 O by $82,000 and decrease fixed selling and administrative expenses by $14,000. Read the tequirements your answer to Requirement 1. (Use parentheses or a minus sign for an operating loss.) Security Alarms Contribution Margin Income Statement For the Year Ended May 31, 2024 Totals With Totals Without Change if Industrial 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 Operating Income (Loss) Requirement 3. What have you learned from the comparison in Requirement 2? The operating income difference calculated on the total analysis of dropping a product line the expected decrease in operating income if Security Alarms drops the industrial systems product line, as shown in Requirement 1. This demonstrates that the differential analysis approach in Requirement 1 yields result as the longer approach in Requirement 2 that compares total operating income under the two alternatives. Submit test