The Income Statement for Nighty Night,Inc Nighty Night,Inc

The income statement for Nighty Night,Inc.is divided into two product lines,blankets and pillows,as follows:
$\begin{array}{|l|r|r|r|} \hline&{\text { Blankets }} &{\text { Pillows }} &{\text { Total }} \\\hline \text { Sales revenue } & \$ 700,000 & \$ 500,000 & \$ 1,200,000 \\\hline \text { Variable costs } & \underline{250,000} & \underline{430,000} & \underline{680,000} \\\hline \text { Contribution margin } & 450,000 & 70,000 & 520,000 \\\hline \text { Fixed costs } & \underline{65,000} & \underline{85,000} & \underline{150,000} \\\hline \text { Operating income (loss) } & \$ 385,000 & \$(15,000) & \$ 370,000 \\\hline\end{array}$ Nighty Night,Inc.should eliminate the pillows product line only,if by doing so,they can eliminate more than $70,000 of fixed costs.