Top managers of Movie Plus are alarmed by the operating losses. They are considering dropping the DVD peoduct 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 it the company stops seling DVDs. Read the requirements Requirement 1. Prepare a differential analysis to show whether Movie Plus should drop the DVD product line Begin by preparing a differential analysis to show whether Movie Plus should drop the DVDs product line. (Enter decreases to profits with a parentheses or minus sign) Expected decrease in revenues-- Dropping DVDs 122000 Expected decrease in cons-Dropping DVDs 93.000 29000 Expected decrease in operating income Data Table - X Requirements 1. Prepare a differential analysis to show whether Movie Plus should drop the DVD product line 2. Will dropping DVDs 604 533,000 to operating income? Explain Movie Plus Income Statement For the Year Ended December 31, 2018 Total Blu-ray Disc DVD Discs Not Sales Revue $ 431.000 $ 309,000 $ 122.000 Var Costs 249.000 155,000 93.000 Contribution Margin 182.000 153,000 26000 Food Cost Manufacturing 121,000 70,000 51.000 64.000 53,000 11.000 Swing and Administrative 105.000 Total Fund Expenses 123,000 62.000 $ (3.000) 30.000 (33,000) Operating Income (Loss) Print Done