1) Managerial Accounting
i Data Table -X opera ed the follow s sellin Income Statement For the Year Ended December 31, 2024 now wh Total Blu-ray Discs DVD Discs hether Net Sales Revenue $ 437,000 $ 308,000 $ 129,000 minus sign.) Variable Costs 250,000 154,000 96,000 Contribution Margin 187,000 154,000 33,000 Fixed Costs: Manufacturing 132,000 76,000 56,000 Selling and Administrative 65,000 51,000 14,000 opera Total Fixed Costs 197,000 127,000 70,000 product Operating Income (Loss) $ (10,000) $ 27,000 $ (37,000) incur fixed nput fi Print DoneTop managers of Video Avenue are alarmed by their operating losses. They are considering dropping the DVD product line. Company accountants have prepared the following analysis to help make this decision: (Click the icon to view the analysis.) Total xed costs will not change if the company stops selling DVDs. Read the @uirements. Requirement 1. Prepare a differential analysis to show whether Video Avenue should drop the DVD product line. Begin by preparing a differential analysis to show whether Video Avenue should drop the DVDs product line. (Enter decreases to prots with a parentheses or minus sign.) Expected decrease in revenuesiDropping DVDs Expected decrease in costsDropping DVDs Expected I Y Iin operating income Decrsron: E decrease : Requireme increase ing DVDs add $37,000 to operating income? Explain. It is V to conclude that dropping the DVD product line would add $37,000 to operating income. If the company drops the DVD product line, it V incur xed expenses allocated to the DVDs. Top managers of Video Avenue are alarmed by their operating losses. They are considering dropping the DVD product line. Company accountants have prepared the following analysis to help make this decision: E (Click the icon to View the analysis.) Total xed costs will not change if the company stops selling DVDs. Read the muirements. Requirement 1. Prepare a differential analysis to show whether Video Avenue should drop the DVD product line. Begin by preparing a differential analysis to show whether Video Avenue should drop the DVDs product line. (Enter decreases to prots with a parentheses or minus sign.) Expected decrease in revenuesDropping DVDs Expected decrease in costsDropping DVDs Expected Em operating income Decision: V Requirem ldd $37,000 to operating income? Explain. Do not drop DVDs It is Drop DVDs ing the DVD product line would add $37,000 to operating income. If the company drops the DVD product line, it : incur xed expenses allocated to the DVDs. Choose from any list or enter any number in the input elds and then continue to the next question. Top managers of Video Avenue are alarmed by their operating losses. They are considering dropping the DVD product line. Company accountants have prepared the following analysis to help make this decision: a (Click the icon to view the analysis.) Total xed costs will not change if the company stops selling DVDs. Read the muirements. Requirement 1. Prepare a differential analysis to show whether Video Avenue should drop the DVD product line. Begin by preparing a differential analysis to show whether Video Avenue should drop the DVDs product line. (Enter decreases to prots with a parentheses or minus sign.) Expected decrease in revenuesiDrcpping DVDs Expected decrease in costsDropping DVDs Expected Em operating income Decision: V Requirement 2. Will dropping DVDs add $37,000 to operating income? Explain. It is l to conclude that dropping the DVD product line would add $37,000 to operating income. If the company drops the DVD product line, it i incur xed expenses allocated to the DVDs. Choc correct Ir enter any number in the input elds and then continue to the next question. incorrect Top managers of Video Avenue are alarmed by their operating losses. They are considering dropping the DVD product line. Company accountants have prepared the following analysis to help make this decision: a (Click the icon to view the analysis.) Total xed costs will not change it the company stops selling DVDs. Read the guirements. Requirement 1. Prepare a differential analysis to show whether Video Avenue should drop the DVD product line. Begin by preparing a differential analysis to show whether Video Avenue should drop the DVDs product line. (Enter decreases to prots with a parentheses or minus sign.) Expected decrease in revenuesiDrcpping DVDs Expected decrease in costsDropping DVDs Expected Em operating income Decision: V Requirement 2. Will dropping DVDs add $37,000 to operating income? Explain. It is V to conclude that dropping the DVD product line would add $37,000 to operating income. If the company drops the DVD product line, it V incur xed expenses allocated to the DVDs. Choose from any list or enter any number in the input elds and then continue to the next question. will 5m would not
