Top managers of Video 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: (Click the icon to view the analysis.) Assume that Video Street can avoid $52,000 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 Video Street 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 Video Street Income Statement For the Year Ended December 31, 2024 Net Sales Revenue $ Total Blu-ray Discs DVD Discs 430,000 $ 309,000 $ 121,000 248,000 149,000 99,000 Variable Costs Contribution Margin 182,000 160,000 22,000 Fixed Costs: Manufacturing 124,000 66,000 69,000 49,000 55,000 17,000 Selling and Administrative Total Fixed Costs 190,000 118,000 72,000 $ (8,000) $ 42,000 $ (50,000) Operating Income (Loss) Laser Systems manufactures an optical switch that it uses in its final product. The switch has the following manufacturing costs per unit: (Click the icon to view the costs.) (Click the icon to view additional information.) Prepare an outsourcing analysis to determine whether Laser Systems should make or buy the switch. (For the Difference column, use a minus sign or parentheses only when the cost of outsourcing exceeds the cost of making the switches in-house.) Make Outsource optical switch Difference (Make-Outsource) optical switch Variable costs: Direct materials Direct labor Variable overhead Purchase price from outsider Total differential cost per unit bu i Data Table X Direct materials $ 9.00 Direct labor 3.50 Variable overhead 6.00 8.50 Fixed overhead $ 27.00 Manufacturing product cost Another company has offered to sell Laser Systems the switch for $21.50 per unit. If Laser Systems buys the switch from the outside supplier, the idle manufacturing facilities cannot be used for any other purpose, yet none of the fixed costs are avoidable