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: E: (Click the icon to view the analysis.) Total fixed costs will not change if the company stops selling DVDs. Read the requirements. X Data Table Requirement 1. Prepare a differential analysis to show whether Video Street should drop the DVD product line. Begin by preparing a differential analysis to show whether Video Street should drop the DVDs product line. (Enter decreases to profits with a parentheses or minus sign.) Video Street Expected decrease in revenuesDropping DVDs Income Statement Expected decrease in costsDropping DVDs For the Year Ended December 31, 2018 Expected in operating income Net Sales Revenue $ Total Blu-ray Discs DVD Discs 426,000 $ 301,000 $ 125,000 247,000 152,000 95,000 Variable Costs Contribution Margin 179,000 149,000 30,000 A Requirements Fixed Costs: Manufacturing 127,000 69,000 72,000 53,000 55,000 16,000 Selling and Administrative 196,000 125,000 Total Fixed Expenses 1. Prepare a differential analysis to show whether Video Street should drop the DVD product line. 2. Will dropping DVDs add $41,000 to operating income? Explain. 71,000 $ (17,000) $ 24,000 $ (41,000) Operating Income (Loss) Print Done Print Done