Data table Safety Place Income Statement For the Year Ended May 31, 2024 Product Line Industrial Household Systems Systems Total Net Sales Revenue $ 330,000 $ 390,000 $720,000 Cost of Goods Sold: Variable Fixed 33,000 48,000 81,000 240,000 66,000 306,000 273,000 114,000 387,000 Total Cost of Goods Sold Gross Profit 57,000 276,000 333,000 Selling and Administrative Expenses: Variable 68,000 77,000 145,000 43,000 Fixed 29,000 72,000 111,000 106,000 217,000 Total Selling and Administrative Expenses $ Operating Income (Loss) (54,000) $ 170,000 $116,000 Print Done Requirement 1. Prepare a differential analysis to show whether Safety Place 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 Safety Place'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.) Safety Place Contribution Margin Income Statement For the Year Ended May 31, 2024 Totals With Industrial Systems Totals Without Industrial Systems Change if Industrial 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 shown in Requirement 1. This demonstrates that the differential analysis approach in Requirement 1 yields the expected decrease in operating income if Safety Place drops the industrial systems product line, as result as the longer approach in Requirement 2 that compares total operating income under the two alternatives