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Business, 23.03.2021 04:20 baseball1525

Members of the board are surprised that the industrial systems product line is losing money. They commission a study to determine whether the company should discontinue the line. Company accountants estimate that discontinuing the industrial systems line will decrease fixed cost of goods sold by $80,000 and decrease fixed marketing and administrative expenses by $11,000. Requirements Prepare an incremental analysis to show whether Security Alliance should discontinue the industrial systems product line. Prepare contribution margin income statements to show Security Allianceā€™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 alternativesā€™ income numbers to your answer to Requirement 1. What have you learned from this comparison?

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