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Movies and More Income Statement For the Year Ended December 31, 2024 Top managers of Movies and More 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: Click the icon to view the analysis.) Total fixed costs will not change if the company stops selling DVDs. Read the requirements. Requirement 1. Prepare a differential analysis to show whether Movies and More should drop the DVD product line. Begin by preparing a differential analysis to show whether Movies and More should drop the DVDs product line. (Enter 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 1. Prepare a differential analysis to show whether Movies and More should drop the DVD product line. 2. Will dropping DVDs add $49,000 to operating income? Explain. Top managers of Entertainment Plus are alarmed by their Assume that Entertainment Plus can avoid operating losses. They are considering dropping the DVD product line. Company accountants have prepared the $36,000 of fixed costs by dropping the DVD following analysis to help make this decision: product line (these costs are direct fixed costs of the DVD product line). Prepare a differential analysis to show whether Entertainment Plus should stop selling DVDs. (Enter decreases to revenues with a parentheses Data table Requirement 3. Bathrooms and kitchens are typically the most important selling features of a home. Preston Builders could differentiate the homes by upgrading the bathrooms and kitchens. The upgrades would cost $30,000 per home but would enable Preston Builders to increase the sales prices by $52,500 per home. (Kitchen and bathroom upgrades typically add about 175% of their cost to the value of any home.) If Preston Builders makes the upgrades, what will the new cost-plus price per home be? Should the company differentiate its product in this manner? Calculate the new cost-plus price per home