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O Points: 0 of 2 Top managers of Sunset Video are alarmed by their operating losses. They are considering dropping the DVD product line. Company

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O Points: 0 of 2 Top managers of Sunset Video are alarmed by their operating losses. They are considering dropping the DVD product line. Company Save accountants have prepared the following analysis to help make this decision: (Click the icon to view the analysis.) Assume that Sunset Video can avoid $38,000 of fixed costs by dropping the DVD product line (these costs are direct fixed costs of the DVD product line). Prepare a differential analysis to show whether Sunset Video should stop selling DVDs. (Enter decreases to revenues with a parentheses or minus sign.) Expected decrease in revenues Expected decrease in costs: Variable costs X Fixed costs Data table Expected decrease in total costs Expected in operating income Sunset Video Income Statement For the Year Ended December 31, 2024 Total Blu-ray Discs DVD Discs Net Sales Revenue A 427,000 $ 303,000 $ 124,000 248,000 158,000 90,000 Variable Costs Contribution Margin 179,000 145,000 34,000 Fixed Costs: Manufacturing 126,000 71,000 55.000 67,000 52,000 15,000 Selling and Administrative 193,000 123,000 70,000 Total Fixed Costs (14,000) $ 22,000 $ (36,000) Operating Income (Loss) Print Done

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