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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 this docision: (Click the icon to viow the analysis.) Total fixed costs will not change it the company stops seling OVDs. Resd the requirements. Requirement 1. Prepare a ditterential analysis to show whether Video Street should drop the DVD product Ine. Begin by preparing a differental analysis to show whether Video Street should drop the DVDs product ine- (Enter decrenses to profits with a parentheses or minus sign.) Expocted decrease in revenues - Oropping DVDs Expected decrease in costs-Dropping DVD: Expocted in operating income Data table rofits with a parentheses or minus sign.) Requirements profits with a parentheses 1. Prepare a differential analysis to show whether Video Street should drop the DVD product line. 2. Will dropping DVDs add $28,000 to operating income? Explain

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