(L.OBJ. 3) Making dropping a product and product-mix decisions [10 min] Refer to Exerci...

(L.OBJ. 3) Making dropping a product and product-mix decisions [10 min]

Refer to Exercise 19-15. Assume that Movie Plus can avoid $26,000 of fixed expenses by dropping the VCR-tape product line (these costs are direct fixed costs of the VGR product line).

Requirement

1. Prepare an incremental analysis to show whether Movie Plus should stop selling VCR tapes.