The Income Statement for Slumber Company Is Divided by Its

The income statement for Slumber Company is divided by its two product lines, blankets and pillows, as follows: $$\begin{array} { | l | r | r | r | } \hline & { \text { Blankets } } & { \text { Pillows } } & { \text { Total } } \\\hline \text { Sales revenue } & \$ 630,000 & \$ 299,000 & \$ 929,000 \\\hline \text { Variable costs } & ( 445,000 & \underline { ( 242,000 ) } & \underline { ( 687,000 ) } \\\hline \text { Contribution margin } & \$ 185,000 & \$ 57,000 & \$ 242,000 \\\hline \text { Fixed costs } & ( 74,000 & \underline { ( 74,000 ) } & \underline { ( 148,000 ) } \\\hline \text { Operating income (loss) } & \$ 111,000 & \$ ( 17,000 ) & \$ 94,000 \\\hline\end{array}$$ Slumber is considering eliminating the pillows product line. If this line is eliminated, Slumber will be able to eliminate $74,000 of total fixed costs. How would this business decision impact operating income?

A) increase of $74,000 in operating income
B) decrease of $57,000 in operating income
C) increase of $131,000 in operating income
D) increase of $17,000 in operating income