Homework: Chapter 8 Homework Questions Save Score: 0 of 10 pts 3 of 7 (0 complete) HW Score: 0%, 0 of 70 pts E8-21A (book/static) Question Help Top managers of Video Avenue are alamed 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 lon to view the analysis.) Total fixed costs will not change in the company stops selling DVDs Beaurements Requirement 1. Prepare an incremental analysis to show whether Video Avenue should drop the DVD product line. Wil dropping DVDs add to operating income? Explain. (Use parentheses or a minus sign to operating income) Video Avenue Analysis of Dropping the DVD Product Line Analysis Expected decrease in revenues Expected decrease in expenses Variable expenses Blu-ray OVOS Toul expected decrease in expenses Expected increase (decrease in operating income Sales revenus..................$ Total 420,000 $ 230,000 190.000 300 000 $ 150.000 150.000 120,000 80.000 Variable expenses Contribution margin Fixed expenses Manufacturing Marketing and administrative Total food expenses ....... 125,000 85.000 70,000 55.000 55.000 30,000 Enter any number in the edit fields and then click Check Answer 210.000 125.000 85.000 45001 (20,000) $ 25000 $ 5 Operating income foss) remaining Check Answer Homework: Chapter 8 Homework Questions Save Score: 0 of 10 pts 3 of 7 (0 complete) HW Score: 0%, 0 of 70 pts E8-21A (book/static) Question Help Top managers of Video Avenue are alamed 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 lon to view the analysis.) Total fixed costs will not change in the company stops selling DVDs Beaurements Requirement 1. Prepare an incremental analysis to show whether Video Avenue should drop the DVD product line. Wil dropping DVDs add to operating income? Explain. (Use parentheses or a minus sign to operating income) Video Avenue Analysis of Dropping the DVD Product Line Analysis Expected decrease in revenues Expected decrease in expenses Variable expenses Blu-ray OVOS Toul expected decrease in expenses Expected increase (decrease in operating income Sales revenus..................$ Total 420,000 $ 230,000 190.000 300 000 $ 150.000 150.000 120,000 80.000 Variable expenses Contribution margin Fixed expenses Manufacturing Marketing and administrative Total food expenses ....... 125,000 85.000 70,000 55.000 55.000 30,000 Enter any number in the edit fields and then click Check Answer 210.000 125.000 85.000 45001 (20,000) $ 25000 $ 5 Operating income foss) remaining Check
