The Income Statement for Sweet Dreams Company Is Divided by Its

The income statement for Sweet Dreams Company is divided by its two product lines, blankets and pillows, as follows: $$\begin{array} { | l | r | r | r | } \hline & { \text { Blankets } } & { \text { Pillows } } & { \text { Total } } \\\hline \text { Sales revenue } & \$ 620,000 & \$ 300,000 & \$ 920,000 \\\hline \text { Variable expenses } & \underline { 465,000 } & \underline { ( 240,000 } & \underline { ( 705,000 } ) \\\hline \text { Contribution margin } & \$ 155,000 & \$ 60,000 & \$ 215,000 \\\hline \text { Fixed expenses } & \underline { ( 76,000 } ) & \underline { ( 76,000 } ) & \underline { ( 152,000 } ) \\\hline \text { Operating income (loss) } & \$ 79,000 & \$ ( 16,000 & \$ 63,000 \\\hline\end{array}$$ Sweet Dreams is considering eliminating the pillows product line. If they do so, they will be able to eliminate $76,000 of total fixed costs. How would that business decision impact operating income?

A) increase $76,000 in operating income
B) decrease $60,000 in operating income
C) increase $42,000 in operating income
D) increase of $16,000 in operating income