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Parrino has three product lines in its retail stores: books, DVDs, and music. Results of the fourth quarter are presented below: Revenue Variable costs Direct fixed costs Common fixed costs Vet income (loss) Books Musis DVDs Total $22,500 $15,000 $10,600 $48,100 12,000 8,000 5,000 25,000 4,000 3,000 3,500 10,500 4777 3.185 5,038 13,000 S1.723 $815 ($2.938) {$400 memand of individual products is not affected by changes in other product lines. Direct fixed costs are costs associated with the specific roduct line. They will be eliminated if a product line is discontinued. The common fixed costs are allocated based on revenue and will incurred regardless of how many product lines are carried. quired: a) Prepare an incremental analysis of the effect of dropping the DVDs product line. Should DVDs be dropped? (7 marks) b) Comment on two non-financial factors to be considered by the company in the keep/drop situation. (2 marks)