The income statement for Sweet Dreams Company is divided by its two product lines, blankets and pillows, as follows

Blankets Pillows Total
Sales revenue $820,000 $300,000 $1,120,000
Variable costs 465,000 240,000 705,000
Contribution margin 355,000 60,000 415,000
Fixed costs 66,000 76,000 142,000
Operating income (loss) $289,000 $(16,000 ) $273,000

If Sweet Dreams can eliminate total fixed costs of $28,000 by dropping the pillows line, operating income will increase by $16,000.
Indicate whether the statement is true or false

FALSE .Expected decrease in revenue $(300,000 )
Expected decrease in total variable costs $240,000
Expected decrease in fixed costs 28,000
Expected decrease in total costs 268,000
Expected decrease in operating income $(32,000 )