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The income statement for Eldeldown, Inc. is divided by its two product lines, blankets and pillows, as follows: Blankets Pillows Total Sales revenue $700,000 $700,000
The income statement for Eldeldown, Inc. is divided by its two product lines, blankets and pillows, as follows: Blankets Pillows Total Sales revenue $700,000 $700,000 $1,400,000 Variable costs 350,000 430.000 780.000 Contribution margin 350,000 270,000 620,000 Fixed costs 75,000 75,000 150.000 Operating income (loss) $275,000 $ 195,000 $470,000 If total fixed costs remain unchanged and Eideldown, Inc. drops the pillows line, operating income will decrease by $270,000 O O True False
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