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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

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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 $40,000 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) DH $ (121,000) Expected decrease in revenues Expected decrease in costs Variable costs $ 90,000 11000 Fixed costs 101000 Expected decrease in total costs 20000 Expected increase in operating income Data table Video Street eny Income Statement ts: For the Year Ended December 31, 2024 Net Sales Revenue $ Total Blu-ray Discs DVD Discs 427,000 $ 306,000 $ 121,000 248,000 158,000 90,000 tot Variable Costs Contribution Margin 179,000 148,000 31,000 Fixed Costs: Manufacturing 131,000 68,000 73,000 57,000 58,000 11,000 Selling and Administrative 199,000 130,000 69,000 Total Fixed Costs $ (20,000) $ 18,000 $ (38,000) Operating Income (Loss)

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