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Top managers of Movie Plus 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 Movie 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 Iii (Click the icon to view the analysis.) Total food costs will not change the company stops selling DVD Read the requirements Data Table Blu-ray DVD Total Discs Discs Net Sales Revenue $ 427,000 $ 259,000 306,000 $ 159,000 121,000 100,000 Variable Costs Contribution Margin 168,000 147,000 21,000 Fixed Costs: Manufacturing 131,000 72,000 203,000 78,000 56,000 53,000 16,000 Selling and Administrative Total Fixed Expenses 134,000 69,000 Operating Income (Loss) (35,000) $ 13,000 $ (48,000) Print Done Total fixed costs will not change if the company stops selling 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 de Expected decrease in revenues-Dropping DVDs Expected decrease in costs-Dropping DVDs Expected in operating income Decision: Choose from any list or enter any number in the input fields and then continue to the next question. Activity Details Requirement 2. W dropping DVDs add $48,000 to operating income? Explain It is to conclude that dropping the DVD product line would add $48,000 to operating income of the company drops the DVD product in, it the DVD incurfed expenses located to Choose from any list or enter any number in the input folds and then continue to the next

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