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Business, 30.03.2020 22:12 jahnoibenjamin

The income statement for Slumber Company is divided by its two product lines, blankets and pillows, as follows: Blankets Pillows Total Sales revenue $ 620 comma 000 $ 300 comma 000 $ 920 comma 000 Variable costs (465 comma 000) (241 comma 000) (706 comma 000) Contribution margin $ 155 comma 000 $ 59 comma 000 $ 214 comma 000 Fixed costs (75 comma 000) (75 comma 000) (150 comma 000) Operating income (loss) $ 80 comma 000 $(16 comma 000) $ 64 comma 000 Slumber is considering eliminating the pillows product line. If this line is eliminated, Slumber will be able to eliminate $ 74 comma 000 of total fixed costs. How would this business decision impact operating income?

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The income statement for Slumber Company is divided by its two product lines, blankets and pillows,...
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