Question: 14. Hildes Dairy is considering adding a new product line to their already profitable business. Market research indicates that sales revenue for the new line

14. Hildes Dairy is considering adding a new product line to their already profitable business. Market research indicates that sales revenue for the new line would be $30,000 for 25,000 units. Variable costs for the new product would be $0.85 per unit; additional direct (avoidable) fixed costs would total $5,000; and indirect fixed costs allocated from unavoidable costs currently in place would total$6,250.

If Hildes added the new line, its net income would

increase by $3,750.

O increase by $8,750.

O decrease by $2,500.

O decrease by $3,250.

none of the above.

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