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- X pour Data table Top managers of Sunset Video following analysis to help maka Click the icon to view the Total fixed costs will not chang Read the requirements Sunset Video pith Requirement 1. Prepare a a di Begin by preparing a differentia sign.) Expected decrease in revenue Expected decrease in costs Expected decrease in opet Income Statement For the Year Ended December 31, 2018 Total Blu-ray Discs DVD Discs Net Sales Revenue 427,000 $ 307,000 $ 120,000 Variable Costs 243,000 152,000 91,000 Contribution Margin 184,000 155,000 29,000 Fixed Costs: Manufacturing 132,000 75 000 57,000 Selling and Administrative 59,000 49,000 10,000 Total Fixed Expenses 191,000 124,000 67,000 $ Operating Income (Loss) (7.000) $ 31,000 $ (38,000) Requirements - X 1. Prepare a differential analysis to show whether Sunset Video should drop the DVD product line. 2. Will dropping DVDs add $38,000 to operating income? Explain. Clear all Top manager of Surant Video are alamed by their operating losses. They are considering dropping the DVD product line. Company accountants have prepared the 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 Requirement 1. Prepare a differential analysis to show whether Sunset Video should drop the DVD product line Begin by preparing a differential analysis to show whether Sunset Video should drop the DVDs product line. (Enter decreases to profits with a parentheses or minus sign.) Expected decrease in revenues-Dropping DVDs Expected decrease in costs Oropping DVD: Expected decrease in operating income (0 10

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