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 pillow product line. If they do so, they will be able to eliminate $76,000 of total fixed costs. In that event, how would that business decision impact operating income?

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 pillow product line. If they do so, they will be able to eliminate $76,000 of total fixed costs. In that event, how would that business decision impact operating income?

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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:  Sweet Dreams is considering eliminating the pillow product line. If they do so, they will be able to eliminate $76,000 of total fixed costs. In that event, how would that business decision impact operating income?

The Income Statement for Sweet Dreams Company Is Divided by Its