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:
$$\begin{array} { | l | r | r | r | } \hline &{ \text { Blankets } } & { \text { Pillows } } & { \text { Total } } \\\hline \text { Sales revenue } & \$ 800,000 & \$ 510,000 & \$ 1,310,000 \\\hline \text { Variable costs } & \underline { 450,000 } & \underline { 440,000 } & \underline { 890,000 } \\\hline \text { Contribution margin } & 350,000 & 70,000 & 420,000 \\\hline \text { Fixed costs } & \underline { 75,000 } & \underline { 96,000 } & \underline { 171,000 } \\\hline \text { Operating income (loss) } & \$ 275,000 & \$ ( 26,000 & \$ 249,000 \\\hline\end{array}$$ Nighty Night, Inc. should eliminate the pillows product line only, if by doing so, they can eliminate more than $70,000 of fixed costs.