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: (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 Best Video should drop the DVD product line. Begin by preparing a differential analysis to show whether Best Video 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 Requirements 1. Prepare a differential analysis to show whether Best Video should drop the DVD product line. 2. Will dropping DVDs add $29,000 to operating income? Explain. - X Data table Net Sales Revenue Variable Costs Best Video Income Statement For the Year Ended December 31, 2024 Total Blu-ray Discs DVD Discs 427,000 $ 304,000 $ 123,000 243,000 151,000 92,000 184,000 153,000 31,000 Contribution Margin Fixed Costs: Manufacturing Selling and Administrative 127,000 77,000 50,000 67,000 57,000 10,000 Total Fixed Costs 194,000 134,000 60,000 $ Operating Income (Loss) (10,000) $ 19,000 $ (29,000)