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The income statement for Sweet Dreams Company is divided by its two product linesblankets and pillowsas follows: Blankets Pillows Total Sales revenue $620,000 $300,000 $920,000

The income statement for Sweet Dreams Company is divided by its two product linesblankets and pillowsas follows:

Blankets

Pillows

Total

Sales revenue

$620,000

$300,000

$920,000

Variable expenses

465,000

240,000

705,000

Contribution margin

155,000

60,000

215,000

Fixed expenses

76,000

76,000

152,000

Operating income (loss)

$79,000

$(16,000)

$63,000

If total fixed costs remain unchanged and Sweet Dreams drops the pillow line, what will happen to the operating income? Explain your answer.

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