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 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 Entertainment Plus should drop the DVD product line. Begin by preparing a differential analysis to show whether Entertainment Plus 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 Data Table Expected ]ing in operating income - X - X Requirements Entertainment Plus Income Statement For the Year Ended December 31, 2024 Total Blu-ray Discs DVD Discs 5 429,000 $ 304,000 $ 125,000 250,000 151,000 99.000 Net Sales Revenue Variable Costs 1. Prepare a differential analysis to show whether Entertainment Plus should drop the DVD product line. 2. Will dropping DVDs add $40,000 to operating income? Explain. 179,000 153,000 26,000 Contribution Margin Fixed Costs: Manufacturing Selling and Administrative 128,000 65,000 73,000 54,000 55,000 11,000 Print Done Total Fixed Costs 193,000 127.000 66,000 (40,000) S Operating Income (Loss) (14,000) S 26,000 $ [ Print Print Done