Top managers of Sunset Video 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.) Total fixed costs will not change if the company stops selling DVDs. Read the requirements. Requirement 1. Prepare a differential analysis to show whether Sunset Video should drop the DVD product line. Data table Begin by preparing a differential analysis to show whether Sunset Video 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 Sunset Video should drop the DVD product line. 2. Will dropping DVDs add $50,000 to operating income? Explain. Print Done Sunset Video Income Statement For the Year Ended December 31, 2024 Net Sales Revenue Variable Costs - X Contribution Margin Total Blu-ray Discs DVD Discs $ 429,000 $ 306,000 $ 123,000 251,000 152,000 99,000 178,000 154,000 24,000 Fixed Costs: Manufacturing 132,000 73,000 59,000 Selling and Administrative 73,000 58,000 15,000 Total Fixed Costs 205,000 131,000 74,000 Operating Income (Loss) (27,000) $ 23,000 $ (50,000) Print Done