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.) Total fixed costs will not change if the company stops selling DVDs. Read the requirements sign) 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 Expected decrease in revenues-Dropping DVDs Expected decrease in costo-Dropping DVDs Expected in operating income Choose from any list or enter any number in the input fields and then click Check Answer X Data Table For the Year Ended December 31, 2024 Total Blu-ray Discs DVD Discs Net Sales Revenue $ 422,000 $ 302,000 $ 120,000 Variable Costs 252,000 158,000 94,000 Contribution Margin 170,000 144,000 26,000 Fixed Costs: Manufacturing 126,000 74,000 52,000 69,000 56,000 13,000 Selling and Administrative 195,000 Total Fixed Costs 130,000 65,000 $ (25,000 $ 14,000 $ (39,000) Operating Income (Loss) 1 Requirements 1. Prepare a differential analysis to show whether Video Street should drop the DVD product line. 2. Will dropping DVDs add $39,000 to operating income? Explain. Print Done