Homework: Week 6 Homework Save Score: 0 of 5 pts 2 of 4 (0 complete) HW Score: 0%, 0 of 25 E25-13 (similar to) Question Help Top managers of Movie Plus 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. Requirements 0 Data Table 1. Prepare a differential analysis to show whether Movie Plus should drop the DVD product line. 2. Will dropping DVDs add $48,000 to operating income? Explain. Movie Plus Requirement 1. Prepare a differential analysis to show whether Movie Plus should drop the DVD product line. Begin by preparing a differential analysis to show whether Movie Plus should drop the DVDs product line. (Enter Expected decrease in revenues-Dropping DVDs Expected decrease in expenses-Dropping DVDs Expected in operating income DVD Discs 122,000 96,000 Income Statement For the Year Ended December 31, 2014 Blu-ray Total Discs Sales Revenue 424.000 $ 302,000 $ Variable Costs 255,000 159,000 Contribution Margin 169,000 143,000 Fixed Costs: Manufacturing 129.000 73,000 Selling and Administrative 77,000 59,000 Total Fixed Expenses 206,000 132,000 (37,000) $ 11,000 $ 26,000 56,000 18,000 74,000 48,000)