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Top managers of Best Video are alarmed by their operating losses. They are considering dropping the DVD product line. Company accountants have prepared the following

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Top managers of Best 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: 6 Click the icon to view the analysis.) Total fixed costs will not change if the company stops selling DVDs. Read the requirements i Data Table Requirement 1. Prepare a differential analysis to show whether Best Begin by preparing a differential analysis to show whether Best Video sign.) Best Video Income Statement Expected decrease in revenues-Dropping DVDs For the Year Ended December 31, 2018 Expected decrease in costs-Dropping DVDs Total Blu-ray Discs DVD Discs Expected in operating income Net Sales Revenue $ 430,000 $ 303,000 $ 127,000 Variable Costs 254,000 159,000 95,000 Contribution Margin 176,000 144,000 32,000 Fixed Costs: Manufacturing 122,000 72,000 50,000 65,000 56,000 9,000 Selling and Administrative Total Fixed Expenses 187,000 128,000 59,000 (11,000) $ Operating Income (Loss) 16,000 $ (27,000) $ Print Done

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