Top managers of Entertainment Plus are alamed by their operating losses. They are considering dropping the DVD product i

[answerhappygod]

Top Managers Of Entertainment Plus Are Alamed By Their Operating Losses They Are Considering Dropping The Dvd Product I 1 (19.43 KiB) Viewed 10 times

Top Managers Of Entertainment Plus Are Alamed By Their Operating Losses They Are Considering Dropping The Dvd Product I 2 (24.19 KiB) Viewed 10 times

Top Managers Of Entertainment Plus Are Alamed By Their Operating Losses They Are Considering Dropping The Dvd Product I 3 (21.3 KiB) Viewed 10 times

Top managers of Entertainment Plus are alamed by their operating losses. They are considering dropping the DVD product ine 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 Requirement 1. Prepare a differential analysis to show whether Entertainment Plus should drop the DVD product line Begin by preparing a differential analysis to show whether Entertainment Plus should drop the DVDs product line Enter decreases to profits with a parentheses r minus sign) $(124,000) Expected decrease in revenues-Dropping DVDs Expected decrease in costs-Dropping DVDs in operating income

Decled decrease in reven pected decrease in costs- pected in op Data table Net Sales Revenue Variable Costs Contribution Margin Fixed Costs Entertainment Plus Income Statement For the Year Ended December 31, 2024 Manufacturing Selling and Administrative Total Fixed Costs Operating income (Loss) Print S S Total Blu-ray Discs DVD Discs 301,000 124,000 153,000 97,000 27,000 425.000 250.000 175,000 120,000 60.000 197,000 (22,000) S Done 140,000 70,000 57.000 127,000 21,000 58.000 12.000 70,000 (43,000)

Requirements 1. Prepare a differential analysis to show whether Entertainment Plus should drop the DVD product line. 2. Will dropping DVDs add $43,000 to operating income? Explain. Print - X Done