a$.$ Should Party Munchies be$$ added? Support your position with calculations.

b$.$ Which of the following statements is true with respect to the decision concerning Party$$ Munchies?

$1.$ The $$85,000$ is relevant since the fixed costs must still be incurred.

$2.$ Since there is excess productive$$ capacity, the fixed costs are irrelevant.

$3.$ The opportunity cost of adding the product is $$85,000.$

$4.$ Other relevant factors include demand for other product lines that could be$$ increased, expertise with the new$$ line, and advertising and other selling costs.