The income statement for Sweet Dreamz Company is divided by its two product lines,blankets and pillows,as follows:
Sweet Dreamz 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
Correct Answer:
Verified
Q82: Healthier Living Company manufactures two products-toaster ovens
Q83: Clay Corporation manufactures two styles of lamps-a
Q84: Faros Hats Inc.has two product lines-baseball helmets
Q85: Macaulay Roller Skates Company has three product
Q86: Faros Hats Inc.has two product lines-baseball helmets
Q88: Healthier Living Company manufactures two products-toaster ovens
Q88: Which of the following statements describes a
Q89: Clay Corporation manufactures two styles of lamps-a
Q90: Todd Corporation produces two products,P and Q.P
Q91: Macaulay Roller Skates Company has three product
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents