Sav Score: 0 of 1 pt 3 of 7 (0 complete) HW Score: 0% , 0 of 7 E8-21A (similar to) Question Help Top managers of Movie Plus 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: E (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 an incremental analysis to show whether Movie Plus should discontinue the DVD product line. Will discontinuing DVDS add $24,000 to operating income? Explain. (Enter a "0" in an input box if there is no expected change as a result of discontinuing DVDS is this scenario.) Total Incremental Analysis for Discontinuation Decision Contribution margin lost if DVDS are discontinued Loss: Fixed cost savings if DVDS are discontinued If DVDS are discontinued Operating income Choose from any list or enter any number in the input fields and then click Check Answer Check Answer Clear All parts remaining CO Plus should discontinue the DVD product line Will discontinuing DVDS add $24,000 to operating income? Explain (Enter a "0" in an input box if there is no expected change as a result of discontinuin Total Data Table -X Movie Plus Product Line Contribution Margin Income Statement For the Year Product lines Blu-ray Discs DVDS Company Total Sales revenue 309,000 $ 153.000 S 132.000 $ 1,000 84.000 237 000 Less Varlable expenses Contribution margin 156,000 S 48,000 S 204,000 Less ficed expenses Manufacturing 78,000 53,000 131,000 55,000 19.000 74.000 Marketing and administrative 23,000 S (24.000) $ (1,000) Oparating income (loss) Print Done then click Check Answer Clear All