Security First Income Statement For the Year Ended May 31, 2024 Product Line Selling and Administrative Expenses: \begin{tabular}{|lrrr|} \hline Variable & 62,000 & 77,000 & 139,000 \\ \hline Fixed & 45,000 & 25,000 & 70,000 \\ \hline Total Selling and Administrative Expenses & 107,000 & 102,000 & 209,000 \\ \hline \end{tabular} Members of the board of directors of Security First 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 by $80,000 and decrease fixed selling and administrative expenses by $11,000. Read the requirements. Requirement 1. Prepare a differential analysis to show whether Security First should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits.) Requirement 2. Prepare contribution margin income statements to show Security First'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.) 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)