The income statement for Eideldown, Inc. is divided by its two product lines, blankets and...
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Accounting
The income statement for Eideldown, Inc. is divided by its two product lines, blankets and pillows, as follows: Sales revenue Variable costs Contribution margin Fixed costs Operating income (loss) Blankets $700,000 250,000 450,000 85,000 $365,000 Pillows $600,000 330,000 270,000 85,000 $185,000 Total $1,300,000 580,000 720,000 170,000 $550,000 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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