The income statement for Bedtime Company is divided by its two product lines, blankets and...
60.1K
Verified Solution
Link Copied!
Question
Accounting
The income statement for Bedtime Company is divided by its two product lines, blankets and pillows, as follows: Blankets Pillows Total Sales revenue Variable costs Contribution margin Fixed costs Operating income (loss) $630,000 $299,000$929,000 (445,000) (242,000) (687,000) $185,000 $57,000 $242,000 (76,000)(75,000) (151,000) $91,000 $109,000 $(18,000) Bedtime is considering eliminating the pillows product line. If this line is eliminated, Bedtime will be able to eliminate $74,000 of total fixed costs. How would this business decision impact operating income? A. increase of $17,000 in operating income B. increase of $74,000 in operating income C. increase of $132,000 in operating income D. decrease of $57,000 in operating income
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
