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Can an expert please help me solve the question above? Please show work. The income statement for Slumber Company is divided by its two product
Can an expert please help me solve the question above? Please show work.
The income statement for Slumber Company is divided by its two product lines, blankets and pillows, as follows: Total Blankets Pillows $298,000 (455,000) (241,000) (696,000) $57,000 $232,000 $928.000 Sales revenue $630,000 Variable costs Contribution margin $175,000 Fixed costs (74,000) (74,000) (148,000) $84,000 $101,000 $(17,000) Operating income (loss) Slumber is considering eliminating the pillows product line. If this line eliminated, Slumber will be able to eliminate $74,000 of total fixed costs. How would this business decision impact operating income? O A. increase f $74,000 in operating income O B. decrease of $57,000 in operating income O C. increase of $131,000 in operating income O D. increase f $17,000 in operating incomeStep by Step Solution
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