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: BEST VIDEO Income Statement For the Year Ended December 31, 2016 Blu-ray Discs DVD Discs Total $ 309,000 5 123,000 Sales Revenue Variable Costs Contribution Margin $ 432,000 150,000 90,000 240,000 192,000 59,000 33,000 Fixed Costs: 75,000 52,000 59,000 17,000 76,000 Manufacturing 134,000 Seling and Administrative69,000 203,000 Total Fixed Expenses Operating Income (Loss) (11,000) 32,000(43,000) Total fixed costs will not change if the company stops selling DVDs Requirements 1. Prepare a differential analysis to show whether Best Video should drop the DVD produ line