top managers of entertainment plus are alarmed by their operating losses. they are considering dropping the DVD product line. Company accountants have prepared the following analysis to help make the decision:

Total fixed cost will change the company stop selling DVDs.

Entertainment Plus Income Statement For the Year Ended December 31, 2018 Blu-ray DVD Total Discs Discs Net Sales Revenue $ 427,000 $ 251,000 306,000 $ 158,000 121,000 93,000 Variable Costs Contribution Margin Fixed Costs: 176,000 148,000 28,000 Manufacturing 126,000 74,000 73,000 55,000 53,000 19,000 Selling and Administrative Total Fixed Expenses 200,000 128,000 72,000 $ $ Operating Income (Loss) (24,000) $ 20,000 $ (44,000) Prepare a differential analysis to show whether Entertainment Plus should drop the DVD product line. Will dropping DVDs add $44,000 to operating income? Explain