please do it quickly, thanks!

Top managers of Nova Scotia Video 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. Q (Click the icon to view the analysis.) Total xed costs will not change if the company stops selling DVDs. Muirements Analysis Total Blu-ray Discs DVDs Sales revenue ................... $ 417,000 $ 301.000 $ 115.000 Variable expenses ............... 234'000 156'000 78'000 Contribution margin ............. 183'000 145'000 38'000 Fixed expenses: Manufacturing ............ 138,000 77.000 61.000 Marketing and administrative 79'000 50'000 29'000 Total fixed expenses . . . . . . . w w $ (34,000) $ 18,000 $ (52,000) Operating income (loss) .......... = = Requirement 1. Prepare an incremental analysis to show whether Nova Scotia Video should drop the DVD product line. Will dropping DVDs add to operating income? Explain. (Use parentheses or a minus sign to enter a decrease in operating income.) Nova Scotia Video Analysis of Dropping the DVD Product Line Expected decrease in revenues |:| Expected decrease in expenses: Variable expenses MU Fixed expenses Total expected decrease in expenses Expected increase (decrease) in operating income Decision: DVDs. It is El to conclude that dropping DVDs would add to operating income. If Nova Scotia Video drops the DVD product line, it incur $D in xed expenses allocated to DVDs. Requirement 2. Assume that Nova Scotia Video can avoid $29,000 of fixed expenses by dropping the DVD product line. (These costs are direct fixed costs of the DVD product line.) Prepare an incremental analysis to show whether Nova Scotia Video should stop selling DVDs. (Use parentheses or a minus sign to enter a decrease in operating income.) Nova Scotia Video Analysis of Dropping the DVD Product Line Expected decrease in revenues Expected decrease in expenses: Variable expenses MU W H Fixed expenses Total expected decrease in expenses Expected increase (decrease) in operating income Decision: |:| because the product's incremental revenues its incremental costs. Requirement 3. Now, assume that $85,000 of fixed costs assigned to DVDs are direct fixed costs and can be avoided if the company stops selling DVDs. However, marketing has concluded that Blu-ray disc sales would be adversely affected by discontinuing the DVD line. (Retailers want to buy both from the same supplier.) Blu-ray disc production and sales would decline 10%. What should the company do? Prepare an incremental analysis. (Use parentheses or a minus sign to enter a decrease in operating income.) Nova Scotia Video Analysis of Dropping the DVD Product Line Expected decrease in revenues Expected decrease in expenses: Variable expenses Fixed expenses Total expected decrease in expenses Expected increase (decrease) in operating income Lost contribution margin on Blu-ray discs Net expected increase (decrease) in operating income Decision: Nova Scotia Video should consider This would let Nova Scotia Video its operating income