Question: Requirement 1. Prepare an incremental analysis to show whether Adobe Security should discontinue the industrial systems product line. Requirement 2. Prepare contribution margin income statements


Requirement 1. Prepare an incremental analysis to show whether Adobe Security should discontinue the industrial systems product line. Requirement 2. Prepare contribution margin income statements to show Adobe 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? Begin by preparing the statements with and without the industrial systems line, then prepare the contribution margin income statement showing the decrease if the industrial systems line is discontinued. (Use parentheses or a minus sign for an operating loss.) Data table Members of the board of directors of Adobe Security have Company accountants estimate that discon received the following operating income data for the year the industrial systems line will decrease fixe just ended: of goods sold by $83,000 and decrease fixe Requirements 1. Prepare an incremental analysis to show whether Adobe Security should discontinue the industrial systems product line. 2. Prepare contribution margin income statements to show Adobe 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? 's total operating income the difference between t altematives micomenumberstoyour answer to equirementT. Wiat mave youteamedtrom this comparison? Begin by preparing the statements with and without the industrial systems line, then prepare the contribution marg income statement showing the decrease if the industrial systems line is discontinued. (Use parentheses or a minu: for an operating loss.)
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