Members of the board of directors of Control One have received the following operating income data for the year ended Ma

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Members Of The Board Of Directors Of Control One Have Received The Following Operating Income Data For The Year Ended Ma 1 (28.2 KiB) Viewed 12 times

Members Of The Board Of Directors Of Control One Have Received The Following Operating Income Data For The Year Ended Ma 2 (27.12 KiB) Viewed 12 times

Members Of The Board Of Directors Of Control One Have Received The Following Operating Income Data For The Year Ended Ma 3 (26.74 KiB) Viewed 12 times

Members of the board of directors of Control One 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 $81,000 and decrease fixed selling and administrative expenses by $14,000. Read the requirements Requirement 1. Prepare a differential analysis to show whether Control One should drop the industrial systems product line. (Use parentheses or a minus sign to enter decreases to profits) Expected decrease in revenues Expected decrease in total variable costs Expected decrease in fixed costs Expected decrease in total costs Expected decrease in operating income $ (300,000)

Expected decrease in Expected decrease in Espected decrease in Expected decrease in Expected decrease Control One Income Statement For the Year Ended May 31, 2024 Net Sales Revenue Cost of Goods Sold: Variable Fixed Total Cost of Goods Sold Gross Proft Selling and Administrative Expenses Variable Fixed Total Sering and Administrative Expenses Operating Income (Loss) Print Product Line industrial Systems $ 300.000 $ 35,000 210.000 245.000 55.000 66,000 45.000 111,000 (56,000) Household Systems Done Total 320,000 $ 620.000 42.000 77,000 64.000 274.000 106,000 351.000 214.000 269,000 77,000 28,000 105,000 109,000 $ 143,000 73,000 216,000 53,000

Requirements 1. 2. Prepare a differential analysis to show whether Control One should drop the industrial systems product line.. Prepare contribution margin income statements to show Control One'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. 3. What have you learned from the comparison in Requirement 2? Print - X Done