I only need the answer for E25-14

this manner? any differentiate its product in Learning Objectiv E25-13 Making decisions about dropping a product Top managers of Video Avenue 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: 1. $133,000) VIDEO AVENUE Income Statement For the Year Ended December 31, 2018 Blu-ray Discs Total DVD Discs Net Sales Revenue Variable Costs $ 437,000 250,000 187,000 $ 308,000 154,000 154,000 $ 129,000 96,000 33,000 Contribution Margin Fixed Costs: 132,000 76,000 51,000 Manufacturing Selling and Administrative Total Fixed Expenses Operating Income (Loss) 65,000 197,000 $ (10,000) 56,000 14,000 70,000 $ (37,000) 127,000 $ 27,000 Total fixed costs will not change if the company stops selling DVDs. Requirements 1. Prepare a differential analysis to show whether Video Avenue should drop the DVD product line. 2. Will dropping DVDs add $37,000 to operating income? Explain. Note: Exercise E25-13 must be completed before attempting Exercise E25-14. E25-14 Making decisions about dropping a product Refer to Exercise E25-13. Assume that Video Avenue can avoid $39,000 of direct fixed costs by dropping the DVD product line. Prepare a differential analysis to show whether Video Avenue should stop selling DVDs. Learning Obje $6,000