The Income Statement for Eagle Inc If Total Fixed Costs Remain Unchanged and Eagle Inc

The income statement for Eagle Inc. is divided by its two product lines-blankets and pillows-is as follows:
$$\begin{array} { | l | r | r | r | } \hline & { \text { Blankets } } & { \text { Pillows } } & { \text { Total } } \\\hline \text { Sales revenue } & \$ 700,000 & \$ 500,000 & \$ 1,200,000 \\\hline \text { Variable expenses } & \underline { 450,000 } & \underline { 430,000 } & \underline { 880,000 } \\\hline \text { Contribution margin } & 250,000 & 70,000 & 320,000 \\\text { Fixed expenses } & \underline { 85,000 } & \underline { 85,000 } & \underline { 170,000 } \\\hline \text { Operating income (loss) } & \$ 165,000 & \$ ( 15,000 & \$ 150,000 \\\hline\end{array}$$ If total fixed costs remain unchanged and Eagle Inc. drops the pillows line, operating income will fall by $70,000.