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help The income statement for Nighty Night, Inc. is divided into two product lines, blankets and pillows, as follows: Blankets Pillows Total Sales revenue $900,000
help The income statement for Nighty Night, Inc. is divided into two product lines, blankets and pillows, as follows: Blankets Pillows Total Sales revenue $900,000 $510,000 $1,410,000 Variable costs 450,000 440,000 890,000 Contribution margin 450,000 70,000 520,000 Fixed costs 65,000 96,000 161,000 Operating income (loss) $385,000 $(26,000) $359,000 Nighty Night, Inc. should eliminate the pillows product line only, if by doing so, they can eliminate more than $70,000 of fixed costs True False Clinkt The income statement for Eideldown, Inc. is divided by its two product lines, blankets and pillows, as follows: Blankets Pillows Total Sales revenue $800,000 $500,000 $1,300,000 Variable costs 350,000 430,000 780,000 Contribution margin 450,000 70,000 520,000 Fixed costs 65,000 65,000 130,000 Operating income (loss) $385,000 $5,000 $390,000 If total fixed costs remain unchanged and Eideldown, Inc. drops the pillows line, operating income will decrease by $70,000. O True O False Click to select your
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