The income statement for Slumber Company is divided by its two product lines,blankets and pillows,as follows: $\begin{array}{|c|c|c|c|}
\hline & \text { Blankets } & \text { Pillows } & \text { Total } \
\hline \text { Sales revenue } & \$ 630,000 & \$ 299,000 & \$ 929,0 \
\hline \text { ariable costs } & \underline{ (445,000) } & \underline{(242,000)} & \underline{(687,000)}_{} \
\hline \text { ontribution margin } & \$ 185,000 & \text { \$57,000 } & \$ 242,0 \
\hline \text { ixed costs } & \underline{(74,000)} & \underline{(74,000)} & \underline{(148,000)}_{} \
\hline \text { rating in } & \underline{\$ 111,000} & \underline{\$(17,000)}_{_{}} & \underline{\$94,000}\
\hline
\end{array}$ Slumber is considering eliminating the pillows product line.If this line is eliminated,Slumber will be able to eliminate $74,000 of total fixed costs.How would this business decision impact operating income?

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The Answer of The income statement for Slumber Company is divided by its two product lines,blankets and pillows,as follows: $\begin{array}{|c|c|c|c|}
\hline & \text { Blankets } & \text { Pillows } & \text { Total } \
\hline \text { Sales revenue } & \$ 630,000 & \$ 299,000 & \$ 929,0 \
\hline \text { ariable costs } & \underline{ (445,000) } & \underline{(242,000)} & \underline{(687,000)}_{} \
\hline \text { ontribution margin } & \$ 185,000 & \text { \$57,000 } & \$ 242,0 \
\hline \text { ixed costs } & \underline{(74,000)} & \underline{(74,000)} & \underline{(148,000)}_{} \
\hline \text { rating in } & \underline{\$ 111,000} & \underline{\$(17,000)}_{_{}} & \underline{\$94,000}\
\hline
\end{array}$ Slumber is considering eliminating the pillows product line.If this line is eliminated,Slumber will be able to eliminate $74,000 of total fixed costs.How would this business decision impact operating income?

The Income Statement for Slumber Company Is Divided by Its