The income statement for Sweet Dreams Company is divided by its two product lines, blankets and pillows,
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Question:
The income statement for Sweet Dreams Company is divided by its two product lines, blankets and pillows, as follows:
Sweet Dreams is considering eliminating the pillows product line. If they do so, they will be able to eliminate $76,000 of total fixed costs. How would that business decision impact operating income?
A) Increase $76,000 in operating income
B) Decrease $60,000 in operating income
C) Increase $42,000 in operating income
D) Increase of $16,000 in operating income
Related Book For
Financial Accounting an introduction to concepts, methods and uses
ISBN: 978-0324789003
13th Edition
Authors: Clyde P. Stickney, Roman L. Weil, Katherine Schipper, Jennifer Francis
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