The income statement for Bedtime Company is divided by its two product lines,blankets and pillows,as follows:

Bedtime is considering eliminating the pillows product line.If this line is eliminated,Bedtime will be able to eliminate $72,000 of total fixed costs.How would this business decision impact operating income?

Question

The income statement for Bedtime Company is divided by its two product lines,blankets and pillows,as follows:

Bedtime is considering eliminating the pillows product line.If this line is eliminated,Bedtime will be able to eliminate $72,000 of total fixed costs.How would this business decision impact operating income?

Quizplus · Accepted Answer

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The Income Statement for Bedtime Company Is Divided by Its