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