The income statement for Slumber Company is divided by its two product lines,blankets and pillows,as follows:
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?
A) increase of $74,000 in operating income
B) decrease of $57,000 in operating income
C) increase of $131,000 in operating income
D) increase of $17,000 in operating income
Correct Answer:
Verified
Q105: Management of Bluebird Manufacturing is considering whether
Q109: Head Bucket,Inc.has two product lines-batting helmets and
Q110: Top managers of Technowares Manufacturing are alarmed
Q111: Geo Company's western territory's forecasted income statement
Q112: Momentum Rollerblades has three product lines-D,E,and F.The
Q113: Marisol's Sunglass Company's western territory's forecasted income
Q115: Karlson Roller Skates has three product lines-D,E,and
Q116: Crash Sports,Inc.has two product lines-batting helmets and
Q117: Motion Rollerblades has three product lines-D,E,and F.The
Q118: Top managers of Advanced Data Manufacturing are
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