The Income Statement for Eideldown,Inc If Total Fixed Costs Remain Unchanged and Eideldown,Inc

The income statement for Eideldown,Inc.is divided by its two product lines,blankets and pillows,as follows:
$$\begin{array} { | l | r | r | r | } \hline &{ \text { Blankets } } & { \text { Pillows } } & { \text { Total } } \\\hline \text { Sales revenue } & \$ 900,000 & \$ 500,000 & \$ 1,400,000 \\\hline \text { Variable costs } & \underline { 450,000 } & \underline { 230,000 } & \underline { 680,000 } \\\hline \text { Contribution margin } & 450,000 & 270,000 & 720,000 \\\hline \text { Fixed costs } & \underline { 85,000 } & \underline { 75,000 } & \underline { 160,000 } \\\hline \text { Operating income (loss) } & \$ 365,000 & \$ 195,000 & \$ 560,000 \\\hline\end{array}$$ If total fixed costs remain unchanged and Eideldown,Inc.drops the pillows line,operating income will decrease by $270,000.

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