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Top managers of Video Street are alarmed by their operating losses. They are considering Assume that Video Street can avoid 541,000 of fixed costs by

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Top managers of Video Street are alarmed by their operating losses. They are considering Assume that Video Street can avoid 541,000 of fixed costs by dropping the DVD product in dropping the DVD product line. Company accountants have prepared the following analysis to these costs are direct fixed costs of the DVD product line) help make this decision Prepare a differential analysis to show whether Video Street should stop selling DVDs. (Enter Click the icon to view the analysis) decreases to revenues with a parentheses or minus sign) Expected decrease in revenues 130000 Expected decrease in costs Variable costs 97000 Fixed costs Expected decrease in total costs Expected in operating income Decision Choose from any list or enter any number in the input fields and then continue to the next question, i Data Table -X d costs by uct line). eo Street st s sign.) Net Sales Revenue $ Total Blu-ray Discs DVD Discs 432,000 $ 302,000 $ 130,000 246,000 149,000 97,000 186,000 153,000 33,000 Variable Costs Contribution Margin Fixed Costs: Manufacturing Selling and Administrative Total Fixed Expenses 1430,000 78,000 77,000 59,000 53,000 19,000 208,000 136,000 72,000 (22,000) $ 17,000 $ (39,000) Operating Income (Loss) Print Done Top managers of Video Street are alarmed by their operating losses. They are considering Assume that Video Street can avoid 541,000 of fixed costs by dropping the DVD product in dropping the DVD product line. Company accountants have prepared the following analysis to these costs are direct fixed costs of the DVD product line) help make this decision Prepare a differential analysis to show whether Video Street should stop selling DVDs. (Enter Click the icon to view the analysis) decreases to revenues with a parentheses or minus sign) Expected decrease in revenues 130000 Expected decrease in costs Variable costs 97000 Fixed costs Expected decrease in total costs Expected in operating income Decision Choose from any list or enter any number in the input fields and then continue to the next question, i Data Table -X d costs by uct line). eo Street st s sign.) Net Sales Revenue $ Total Blu-ray Discs DVD Discs 432,000 $ 302,000 $ 130,000 246,000 149,000 97,000 186,000 153,000 33,000 Variable Costs Contribution Margin Fixed Costs: Manufacturing Selling and Administrative Total Fixed Expenses 1430,000 78,000 77,000 59,000 53,000 19,000 208,000 136,000 72,000 (22,000) $ 17,000 $ (39,000) Operating Income (Loss) Print Done

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