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,as follows:
$$\begin{array} { | l | r | r | r | } \hline & { \text { Blankets } } & { \text { Pillows } } & { \text { Total } } \\\hline \text { Sales revenue } & \$ 700,000 & \$ 500,000 & \$ 1,200,000 \\\hline \text { Variable costs } & \underline { 350,000 } & \underline { 330,000 } & \underline { 680,000 } \\\hline \text { Contribution margin } & 350,000 & 170,000 & 520,000 \\\hline \text { Fixed costs } & \underline { 65,000 } & \underline { 75,000 } & \underline { 140,000 } \\\hline \text { Operating income (loss) } & \$ 285,000 & \$ 95,000 & \$ 380,000 \\\hline\end{array}$$ If total fixed costs remain unchanged and Eagle,Inc.drops the pillows line,operating income will decrease by $170,000.

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