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, .... 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.) Expected decrease in revenues-Dropping DVDs Expected decrease in costs-Dropping DVDs Data Table Expected in operating income - X Video Street Requirements Income Statement For the Year Ended December 31, 2024 Total Blu-ray Discs DVD Discs $ 432,000 $ 306,000 $ 126,000 252,000 152,000 100 000 Net Sales Revenue Variable Costs 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. 180,000 154,000 26,000 Contribution Margin Fixed Costs: Manufacturing 132,000 66,000 79,000 54,000 53,000 12,000 Selling and Administrative Print Done Total Fixed Costs 198,000 133,000 65,000 $ (18,000) $ 21,000 $ (39,000) Operating Income (Loss) Print Done