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The Income Statement for Sweet Dreamz Company Is Divided by Its

Question 87

Multiple Choice

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

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