Top managers of Movies and More 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.) Assume that Movies and More can avoid $38,000 of fixed costs by dropping the DVD product line (these costs are direct fixed costs of the DVD product line). Prepare a differential analysis to show whether Movies and More should stop selling DVDs. (Enter decreases to revenues with a parentheses or minus sign.) Expected decrease in revenues Expected decrease in costs: Variable costs i Data Table Fixed costs Expected decrease in total costs Expected in operating income Decision: Movies and More Income Statement For the Year Ended December 31, 2018 Blu-ray Total Discs DVD Discs 429,000 $ 240,000 305,000 $ 149,000 124,000 91,000 189,000 156,000 33,000 Net Sales Revenue Variable Costs Contribution Margin Fixed Costs: Manufacturing Selling and Administrative Total Fixed Expenses 133,000 63,000 77,000 50,000 127,000 29,000 $ 56,000 13,000 69,000 (36,000) 196,000 (7,000) $ $ Operating Income (Loss) Print Print Done Done