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: (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 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 Expected decrease in costs-Dropping DVDs Expected in operating income Data table Movie Plus Income Statement For the Year Ended December 31, 2024 Net Sales Revenue Variable Costs Contribution Margin Total Blu-ray Discs DVD Discs $ 433,000 $ 245,000 307,000 $ 153,000 126,000 92,000 188,000 154,000 34,000 Fixed Costs: Manufacturing 128,000 72.000 56,000 Selling and Administrative 67,000 58.000 9,000 Total Fixed Costs 195,000 130,000 65,000 $ (7,000) $ 24,000 $ (31,000) Operating Income (Loss) Print Done Requirements 1. Prepare a differential analysis to show whether Movie Plus should drop the DVD product line. 2. Will dropping DVDs add $31,000 to operating income? Explain. Print Done