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Data table

Top managers of Movie 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: (Click the icon to view the analysis.) Expected decrease in revenues Expected decrease in costs: Variable costs Fixed costs Expected decrease in total costs Assume that Movie Street can avoid $51 ,000 of fixed costs by dropping the DVD product line (these costs are direct fixed costs of the DVD product line). Prepare a differential analysis to show whether Movie Street should stop selling DVDs. (Enter decreases to revenues with a parentheses or minus sign.) Data table Movie Street Income Statement For the Year Ended December 31, 2024 Expected Decision: in operating income Drop DVDs Do not drop DVDs Net Sales Revenue Variable Costs Contribution Margin Fixed Costs: Manufacturing Selling and Administrative Total Fixed Costs Operating Income (Loss) Total Blu-ray Discs 429,000 $ 307,000 $ 252,000 155,000 177,000 152,000 135,000 79,000 67,000 49,000 202,000 128,000 (25,000) $ 24,000 $ DVD Discs 122,000 97 ,ooo 25,000 56,000 18,000 74,000 (49,000)