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Top managers of Movies are Best are alarmed by their operating losses. They are considering dropping the DVD product line. Company accountants have prepared
Top managers of Movies are Best 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 are Best can avoid $45,000 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 are Best should stop selling DVDs. (Enter decreases to revenues with a parentheses or minus sign.) Expected decrease in revenues Expected decrease in costs: Variable costs Fixed costs Expected decrease in total costs Expected in operating income Help me solve this Etext pages Get more help Data table Movies are Best Income Statement For the Year Ended December 31, 2024 - Total Blu-ray Discs DVD Discs Net Sales Revenue 426,000 $ 300,000 $ 126,000 Variable Costs 255,000 156,000 99,000 Contribution Margin 171,000 144,000 27,000 Fixed Costs: Manufacturing 125,000 70,000 55,000 Selling and Administrative 73,000 58,000 15,000 answer
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