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bankscorneliuso39
bankscorneliuso39
04.09.2019 • 
Business

The income statement for sweet dreams company is divided by its two product lines, blankets and pillows, as follows:
blankets pillows total sales revenue $820,000 $320,000 $1,140,000 variable costs 260,000 265,000 525,000 contribution margin 555,000 60,000 615,000 fixed costs 56,000 106,000 162,000 operating income (loss) $499,000 $(46,000) $453,000if sweet dreams can eliminate total fixed costs of $32,000 by dropping the pillows line, operating income will increase by $46,000.
(a) true
(b) false

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