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make this decision: (Cick the icon to viow the analysis.) Total fixed costs will not change it the company stops seling DVDs. Read the requirements

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make this decision: (Cick the icon to viow the analysis.) Total fixed costs will not change it the company stops seling DVDs. Read the requirements Requirement 1. Prepare a differential analysis to show whether Movie Street should drop the DVD product line Begin by preparing a differential analysis to show whether Movie Street should drop the DVDs product line. (Enter decreases to profits with a parentheses or minus sign) Expected decrease in Expected decrease in costs-Dropping DVDs Expected [ in, operating income DVDs a Table Movie Street Income Statement For the Year Ended December 31, 2018 DVD Blu-ray Discs $425,000 300,000 125,000 the Discs Total et Sales Revenue ariable Costs ontribution Margin ixed Costs: 100,000 155,000 255,000 25,000 170,000 145,000 75,000 57,000 132,000 Manufacturing Selling and Administrative 133,000 73,000 206,00 O58,000 16,000 74,000 $ (36,000) $ 13,000 S (49,000) Total Fixed Expenses Operating Income (Loss) Print Done i Requirements 1. Prepare a differential analysis to show whether Movie Street should drop the DVD product line. 2. Will dropping DVDs add $49,000 to operating income? Explain. Print Done the input fields and then click Check Answer Clear All 2492

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