Electronic Media manufactures DVDs and Blu-ray products. The company's product line income statement follows:

Management is considering dropping the DVD product line. Accountants for the company estimate that dropping the DVD line will decrease fixed cost of goods sold by $8,000 and fixed marketing and administrative expenses by $2,000.
Prepare an analysis supporting your opinion about whether or not the DVD product line should be dropped.

Question

Electronic Media manufactures DVDs and Blu-ray products. The company's product line income statement follows:
  
Management is considering dropping the DVD product line. Accountants for the company estimate that dropping the DVD line will decrease fixed cost of goods sold by $8,000 and fixed marketing and administrative expenses by $2,000.
Prepare an analysis supporting your opinion about whether or not the DVD product line should be dropped.

Quizplus · Accepted Answer

The Answer of Electronic Media manufactures DVDs and Blu-ray products. The company's product line income statement follows:
  
Management is considering dropping the DVD product line. Accountants for the company estimate that dropping the DVD line will decrease fixed cost of goods sold by $8,000 and fixed marketing and administrative expenses by $2,000.
Prepare an analysis supporting your opinion about whether or not the DVD product line should be dropped.

Electronic Media Manufactures DVDs and Blu-Ray Products