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The income statement for Nighty Night, Inc. is divided into two product lines, blankets and pillows, as follows Blankets Pillows Total Sales revenue Variable costs
The income statement for Nighty Night, Inc. is divided into two product lines, blankets and pillows, as follows Blankets Pillows Total Sales revenue Variable costs Contribution margin Fixed costs Operating income (loss) $800,000 450,000 350,000 65,000 $285,000 $500,000 430,000 70,000 85,000 $(15,000) $1,300,000 880.000 420,000 150,000 $270,000 Nighty Night, Inc. should eliminate the pillows product line only, if by doing so, they can eliminate more than $70,000 of fixed costs O True False
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