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 $$44,000$ 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

minun ninn?

Expected decrease in revenues

Expected decrease in costs:

Variable costs

Fixed costs

Expected decrease in total costs

Expected in operating income

Decision:

Data table