Question

Score: 0 z0 of 1 pl 70 % 56K/s P25-23A (similar to) Members of the board of directors of Safety Point have recelved the following operating income data for the year ended May 31, 2018 (Cick 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 ine Company accountants estimate that dropping industria systems will decrease fixed cost of goods sold by $81,000 and decrease fixed seling and administrative expenses by $11.000 Read the tequitements Totals With Totals Without Change if Industrial Industrial Systems Industrial Systems Systems Is Dropped Net Sales Revenue Variable Costs Manufacturing Selling and Administraive Total Variable Costs Contibuion Margin Foxed Costs Enter any number in the edt feids and then click Check Answer part temaining Clear Al Check Answer 4 d0 % PM nv2019 Type here to search

Answer 1

	Totals with Industrial	Totals without Industrial	Change if Industrial
	Systems	Systems	System is dropped
Net Sales Revenue	710000	710000	0
Variable Costs
Manufacturing	85000	85000	0
Selling and Administrative	304000	304000	0
Total Variable Costs	389000	389000	0
Contribution Margin	321000	321000	0
Fixed Costs
Manufacturing	142000	61000	-81000
Selling and Administrative	63000	52000	-11000
Total Fixed Costs	205000	113000	-92000
Operating Income/ (Loss)	116000	208000	92000