HW 8. Please complete all requirements :) 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 systemsdecrease fixed cost of goods sold by $80,000 and decrease fixed selling and administrative expenses by $12,000.Read the reguirements.Data TableRequirement 1. Prepare a differential analysis to show whether Security Check should drop the industrial systems product line.Security CheckIncome StatementFor the Year Ended May 31, 2018Product LineHouseholdSystemsIndustrialin operating incomeSystemsTotalNet Sales Revenue$360,000 $380,000 $ 740,000Cost of Goods Sold:Variable37,00047,00084,000260,00063,000323,000Fixed297,000110,000407,000Total Cost of Goods SoldGross Profit63,000270,000333,000Selling and Administrative Expenses:Choose from any list or enter any number in the input fields and then click Check Answer.Variable64,00073,000137,00044,00026,00070,000FixedHeln Me Selve ThieVidooGet Mere Heln Requirements1. Prepare a differential analysis to show whether Security Check should drop the industrialsystems product line.2. Prepare contribution margin income statements to show Security Check's total operatingincome 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 toRequirement 1.3. What have you learned from the comparison in Requirement 2?

1. Incremental Analysis for Discontinuation Decision The expected decrease in revenues…

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

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

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterE: Departmental Accounting

Section: Chapter Questions

Problem 3P

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