Top managers of Movies Street 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.

Assume that Movie Street can avoid $39,000 of fixed costs by dropping the DVD product line (these costs are direct fixed cost of the DVD product line).

Prepare a differential analysis to show whether Movie Street should stop selling DVDs. (Enter decreases to revenues with a parentheses or minus sign.)

Data Table Top managers of Movie Street are alarmed by their operating losses. They are conside Company accountants have prepared the following analysis to help make this decision ?(Click the icon to view the analysis) Movie Street ncome Statement For the Year Ended December 31, 2018 Expected decrease in revenues Expected decrease in costs Blu-ray DIScs DVD Discs Total Variable costs 431,000 $ 305,000 $ 126,000 Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Fixed costs Expected decrease in total costs 249,000 152,00097000 182000 153,000 29,000 Expectedin operating income Manufacturing Selling and Administrative 75,000 58,000 133,000 125,000 50,000 Decision 74000016,000 Total Fixed Expenses 199,000 56,000 Drop DVD Do not drop DVDs $ (17,000) $20,000 S (37,000) Operating Income (Loss) Print Done