Top Managers Of Best Video Are Alarmed By Their Operating Losses They Are Considering Dropping The Dvd Product Line Co 1 (28.34 KiB) Viewed 11 times
Top Managers Of Best Video Are Alarmed By Their Operating Losses They Are Considering Dropping The Dvd Product Line Co 2 (24.05 KiB) Viewed 11 times
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: EEE (Click the icon to view the analysis.) Expected decrease in revenues Expected decrease in costs: Variable costs Fixed costs Expected decrease in total costs Expected in operating income KETED $ (126,000) Assume that Best Video can avoid $35,000 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 Best Video should stop selling DVDs. (Enter decreases to revenues with a parentheses or minus sign.)
Fooed costs Expected decrease in Expected Data table Net Sales Revenue Vanable Costs Contribution Margin Fixed Costs Best Video Income Statement For the Year Ended December 31, 2024 Manufacturing Selling and Administrative Total Fixed Costs Operating Income (Loss) Print $ S Blu-ray Discs Total 430,000 $ 252.000 178.000 129,000 70.000 199,000 (21,000) $ Done 304,000 $ 150.000 145,000 74,000 59.000 DVD Discs 133,000 12,000 120.000 13.000 33.000 15.000 11,000 66,000 (33.000)
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