The Income Statement for Eagle Inc Eagle Inc Should Eliminate the Pillows Product Line Only, If by Product

The income statement for Eagle Inc. is divided into two product lines, blankets and pillows, as follows:
$\begin{array}{|l|r|r|r|} \hline&{\text { Blankets }} &{\text { Pillows }} &{\text { Total }} \\\hline \text { Sales revenue } & \$ 700,000 & \$ 500,000 & \$ 1,200,000 \\\hline \text { Variable expenses } & \underline{450,000} & \underline{430,000} & \underline{880,000} \\\hline \text { Contribution margin } & 250,000 & 70,000&320,000 \\\hline \text { Fixed expenses } & \underline{85,000} & 85,000&170,000 \\\hline \text { Operating income (loss) } & \$ 165,000 & \$(15,000)&\$150,000 \\\hline\end{array}$ Eagle Inc. should eliminate the pillows product line only, if by doing so, they can eliminate more than $70,000 of fixed costs.