Table 8 The income statement for Sweet Dreams Company divided by its two product lines, blankets and pillows, follows: Sales revenue Variable expenses Contribution margin Fixed expenses Operating income (loss) Blankets $620,000 465,000 155,000 76,000 $ 79,000 Pillows $300,000 240,000 60,000 76,000 $ (16,000) Total $920,000 705,000 215,000 152,000 $ 63,000 18) Refer to Table 8. If fixed costs remain unchanged and Sweet Dreams drops the pillow line, then: 18) 1) total operating income will decrease $60,000. 2) total contribution margin will increase $60,000. 3) total operating income will increase $16,000. A) 3 only B) 1 only C) both 2 and 3 D) 2 only