clon of Secunty Check have receved folowing perating income daa for the year ended May 31, 2024 2h. M41,0000 SECURITY CHEOK ncome Statement For the Year Ended May 31, 2024 Produst une ndutriel Syrtema Houehald yrtema Ttal Net Sales eveue Cntof Goods Sok Variale 7,000 Fied ,000 Tetal Cot of Goo eld 401,000 Grm haf ,000 Seling and Adminitratie tpen Verialle 71,000 27,000 7, 000 207, 000 Ped Tutal eling and Adminratie tpenn Opering me m 108,000 1000 14,000 Memlen of the lnl arepised d the indarl y prodet lne is ot prolie dile. They comminkna aly deermine wleder the company shnkl drop the ine. Campany aceuntas eimate that dropping inshaial sptems will derese fied co of a wal ly SKD and deree fied selling and alminitrive espenes by $12. Requirements 1. Prepare a dfierential analysis o shuw whether Neeurity Check should drop the indutrial sytems praluct ine. 2. Prepare contiluion margin income satements to show Security Check's soal operating income under the wo ahernative (0 with the industrial systems line and () without the line, Compare the dren between the rwo ahernatives
clon of Secunty Check have receved folowing perating income daa for the year ended May 31, 2024 2h. M41,0000 SECURITY CHEOK ncome Statement For the Year Ended May 31, 2024 Produst une ndutriel Syrtema Houehald yrtema Ttal Net Sales eveue Cntof Goods Sok Variale 7,000 Fied ,000 Tetal Cot of Goo eld 401,000 Grm haf ,000 Seling and Adminitratie tpen Verialle 71,000 27,000 7, 000 207, 000 Ped Tutal eling and Adminratie tpenn Opering me m 108,000 1000 14,000 Memlen of the lnl arepised d the indarl y prodet lne is ot prolie dile. They comminkna aly deermine wleder the company shnkl drop the ine. Campany aceuntas eimate that dropping inshaial sptems will derese fied co of a wal ly SKD and deree fied selling and alminitrive espenes by $12. Requirements 1. Prepare a dfierential analysis o shuw whether Neeurity Check should drop the indutrial sytems praluct ine. 2. Prepare contiluion margin income satements to show Security Check's soal operating income under the wo ahernative (0 with the industrial systems line and () without the line, Compare the dren between the rwo ahernatives
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process
Section: Chapter Questions
Problem 9RQSC: Assume that an organization asserts that it has $35 million in net accounts receivable. Describe...
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