show work!

Video Avenue Income Statement DVD Discs $ For the Year Ended December 31, 2018 Blu-ray Total Discs Net Sales Revenue 437,000 $ 308,000 $ Variable Costs 250,000 154,000 Contribution Margin 187.000 154,000 Fixed Costs: Manufacturing 132,000 76,000 65,000 Selling and Administrative 51,000 Total Fixed Expenses 197,000 127,000 $ Operating income (Loss) (10,000) $ 27,000 $ 129,000 96,000 33,000 56,000 14,000 70,000 (37.000) o 309 Top managers of Video Avenue are alarmed by their operating losses. They are con product line. Company accountants have prepared the following analysis to help ma (Click the icon to view the analysis.) Expected decrease in revenues Expected decrease in costs: Variable costs Fixed costs Expected decrease in total costs Expected (1) in operating income Decision: (2) 1: Data Table Net Sales Revenu Variable Costs Contribution Margin Fbxed Costs Manufacturing Selling and Admin Type here to search Total Fixed Expenses BI (1) O increase decrease (2) O Drop DVDs O Do not drop DVDs O Type here to search Assume that Video Avenue can avoid $39,000 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 Video Avenue should stop selling DVDs. (Enter decreases to revenues with a parentheses or minus sign.)