Jane wishes to obtain a loan of $90,000 from Silver Corp. At the request of Silver, Jane has entered into an agreement with Bing, Piper, and Long to act as cosureties on the loan. The agreement between Jane and the cosureties stated that the maximum liability of each cosurety is: Bing $60,000, Piper $30,000, and Long $90,000. Based upon the surety relationship, Silver agreed to make the loan. After paying three installments totaling $30,000, Jane defaulted. Prior to making payment, the cosureties may seek the remedy of

To maximize financial risk, a provider should strive to attain a cost structure that matches its revenue structure.

a. true b. false

The income statement for Sweet Dreams Company is divided by its two product lines, blankets and pillows, as follows

Blankets Pillows Total Sales revenue $820,000 $300,000 $1,120,000 Variable costs 465,000 240,000 705,000 Contribution margin 355,000 60,000 415,000 Fixed costs 66,000 76,000 142,000 Operating income (loss) $289,000 $(16,000 ) $273,000 If Sweet Dreams can eliminate total fixed costs of $28,000 by dropping the pillows line, operating income will increase by $16,000. Indicate whether the statement is true or false