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:
$$\begin{array} { | l | r | r | r | } \hline & \text { Blankets } & { \text { Pillows } } & { \text { Total } } \\\hline \text { Sales revenue } & \$ 620,000 & \$ 300,000 & \$ 920,000 \\\hline \text { Variable expenses } & 465,000 & 240,000 & 705,000 \\\hline \text { Contribution margin } & 155,000 & 60,000 & 215,000 \\\text { Fixed expenses } & \underline { 76,000 } & \underline { 76,000 } & \underline { 152,000 } \\\hline \text { Operating income (loss) } & \$ 79,000 & \$ ( 16,000 & \$ 63,000 \\\hline\end{array}$$ If Sweet Dreams can eliminate total fixed costs of $30,000 by dropping the pillows line, operating income will go up by $16,000.