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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
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: E(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 Begin by preparing a differential analysis to show whether Sunset Video should drop the DVDS product line. (Enter decreases to profits with a parentheses r minus sign.) Expected decrease in revenues-Dropping DVDS iData Table Expected decrease in costs-Dropping DVDS operating income Expected Sunset Video Requirements Income Statement For the Year Ended December 31, 2018 DVD Blu-ray . Prepare a differential analysis to show whether Sunset Video should drop the DVD product line Total Discs Discs 2. Will dropping DVDS add $46,000 to operating income? Explain Net Sales Revenue S 428,000 $ 301,000 S 127,000 100,000 255,000 155,000 Variable Costs 173.000 146.000 27.000 Contribution Margin Print Done Fixed Costs Manufacturing 72,000 54,000 126.000 77.000 58,000 19.000 Selling and Administrative 203,000 130,000 73,000 Total Fixed Expenses (30.000) $ 16,000 S (46,000) Choose from any list or enter any number the input fields and then click Chec Operating Income (Loss)
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