The income statement for Sweet Dreams Company is divided by its two product lines, blankets and pillows, as follows: If Sweet Dreams can eliminate total fixed costs of $30,000 by dropping the pillows line, operating income will go up by $16,000.

Question

The income statement for Sweet Dreams Company is divided by its two product lines, blankets and pillows, as follows:  If Sweet Dreams can eliminate total fixed costs of $30,000 by dropping the pillows line, operating income will go up by $16,000.

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The Answer of The income statement for Sweet Dreams Company is divided by its two product lines, blankets and pillows, as follows:  If Sweet Dreams can eliminate total fixed costs of $30,000 by dropping the pillows line, operating income will go up by $16,000.

The Income Statement for Sweet Dreams Company Is Divided by Its