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Top managers of Movies and More are alarmed by their operating losses Assume that Movies and More can avoid $47,000 of fred costs by They
Top managers of Movies and More are alarmed by their operating losses Assume that Movies and More can avoid $47,000 of fred costs by They are considering dropping the DVD product line. Company dropping the DVD product line these costs are direct fixed costs of the accountants have prepared the following analysis to help make this DVD product line) decision: Prepare a differential analysis to show whether Movies and More should (Click the icon to view the analysis.) stop seling DVDs. (Enter decreases to revenues with a parentheses or minus sign.) 120000 100000 Expected decrease in revenues Expected decrease in costs Variable costs Fired costs Expected decrease in total costs Expected decrease in operating income 65000 85000 0 Data Table DVD Discs 120,000 100.000 Movies and More Income Statement For the Year Ended December 31, 2018 Blu-ray Total Disos Net Sales Revenue $ 426,000 $ 306,000 $ 250.000 150.000 Variable Costs Contribution Margin 176,000 156,000 Fixed Costs Manufacturing 129,000 73,000 Selling and Administrative 62,000 53,000 191.000 126.000 Total Fixed Expenses Operating Income (Loss) $ (15,000) $ 30,000 $ 20.000 56,000 9,000 65.000 (45,000) Print Done
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