mtin Topmoderno Movies Street a larmed by their operating 1044. They are considering dropping the DVD product in Company accountants have compared to (Click the loon to view the analysis) Total fixed costs will not change in the company stops selling 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 ine (Entur 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 - . X puntants Data Table e Street elp make wiew the et chang 5. are a diff Movie Street Income Statement For the Year Ended December 31, 2024 Total Blu-ray Discs DVD Discs 427,000 $ 303,000 $ 124,000 256,000 156,000 100,000 th a par differentia Net Sales Revenue Variable Costs revenue 171,000 147,000 24,000 costs- in ope Contribution Margin Fixed Costs: Manufacturing Selling and Administrative 134,000 74,000 78,000 58,000 56,000 16,000 208,000 136,000 72,000 Total Fixed Costs (37,000) $ 11,000 $ (48,000) Operating Income (Loss) Print Done Requirements 1. Prepare a differential analysis to show whether Movie Street should drop the DVD product line. 2. Will dropping DVDs add $48,000 to operating income? Explain. Print Done