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Top managors of Surset Video are alarmed by their operating losses. They are considering diping the DVD product lone. Company accountarks have prepared the folowing
Top managors of Surset Video are alarmed by their operating losses. They are considering diping the DVD product lone. Company accountarks have prepared the folowing andiysis to help make this docision: (Cick the icon to view the analysh.) Total foxed costs will not change if the compary stops selling DVDs. Fead the roguirements. Hequrement 1. Propare a ofterental anaysit to show whether Surbet vono shoula arop the uvu product the Decision Aequirement 2. Wil drogping DVDs add \$A1,000 to operating income? Explan It is incurfred expener allocited to the DVDer. Data table Requirements 1. Prepare a differential analysis to show whether Sunset Video should drop the DVD product line. 2. Will dropping DVDs add $41,000 to operating income? Explain
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