= Homework: Week #7 Chapter #8 Question list Question 1 * Question 2 K Question 3, EM8-13 (similar to) Part 1 of 3 HW Score: 45.31%, 1.81 of 4 points Points: 0 of 1 Top managers of Best Video 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. Data table Best Video Income Statement Question 3 Question 4 in operating income Requirement 1. Prepare a differential analysis to show whether Best Video should drop the DVD product line. Begin by preparing a differential analysis to show whether Best Video should drop the DVDs product line. (Enter Expected decrease in revenues-Dropping DVDs Expected decrease in costs-Dropping DVDs Expected For the Year Ended December 31, 2024 Net Sales Revenue Variable Costs Contribution Margin Total Blu-ray Discs DVD Discs $ 429,000 $ 304,000 $ 125,000 253,000 159,000 94,000 176,000 145,000 31,000 Fixed Costs: Manufacturing 121,000 70,000 51,000 Requirements Selling and Administrative 65,000 52,000 13,000 186,000 122,000 Total Fixed Costs 64,000 1. Prepare a differential analysis to show whether Best Video should drop the DVD product line. 2. Will dropping DVDs add $33,000 to operating income? Explain. (10,000) $ 23,000 $ Operating Income (Loss) (33,000) Help me solve this Etext pages Get more neip Print Done Print Done Save Clear all Check answer