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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: (Click the icon to view the analysis.) Assume that Best Video can avoid $51,000 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 Best Video should stop selling DVDs. (Enter decreases to revenues with a parentheses or minus sign.) Expected decrease in revenues Expected decrease in costs: Variable costs Fixed costs Expected decrease in total costs Expected in operating income Data table Best Video Income Statement For the Year Ended December 31, 2018 Total Blu-ray Discs DVD Discs Net Sales Revenue $ 426,000 $ 306,000 $ 120,000 Variable Costs 250,000 156,000 94.000 Contribution Margin 176,000 150,000 26,000 Fixed Costs: Manufacturing 131,000 73,000 58,000 Selling and Administrative 69,000 52,000 17,000 Total Fixed Expenses 200,000 125,000 75,000 (24,000) $ 25,000 $ (49,000) Operating Income (Loss)

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