1.Prepare a differential analysis to show whether Video Avenue should drop the DVD product line.2.Will dropping DVDs add $37,000 to operating income? Explain.

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: (Click the icon to view the analysis.) Total fixed costs will not change if the company stops selling DVDs. Read the requirements. 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 profits with a parentheses or minus sign.) Expected decrease in revenues-Dropping DVDs Expected decrease in costs-Dropping DVDs Expected in operating income Data table