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 Total fixed costs will not change if the company stops selling DVDs Requirement 1. Prepare a differential analysis to show whether Movies are Best should drop the DVD product line. Begin by preparing a differential analysis to show whether Movies are Best 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 Requirements 1. Prepare a differential analysis to show whether Movies are Best should drop the DVD product line 2. Will dropping DVDs add $51,000 to operating income? Explain Data table Movies are Best Income Statement For the Year Ended December 31, 2024 Total Blu-ray Discs DVD Discs Net Sales Revenue 423,000 $ 301,000 $ 122,000 Variable Costs. 253,000 156,000 97,000 Contribution Margin 170,000 145.000 25,000 Fixed Costs Manufacturing 130.000 73,000 57.000 Selling and Administrative 72,000 53.000 19.000 Total Fixed Costs 202.000 126,000 76.000 $ Operating Income (Loss) (32,000) S 19,000 5 (51,000)