D is $44,400

Assume a company is considering adding a new product. The expected cost and revenue data for this product are as follows: Annual sales 5, 000 units Unit selling price $ 60 Unit variable costs: Production $ 33 Selling $ 6 Incremental fixed costs per year: Production $ 32, 500 Selling $ 45, 000 If the company adds the new product, it expects the contribution margin of other product lines to drop by $16,900 per year. What is the financial advantage (disadvantage) of adding the new product? Multiple Choice $88,100 O $10,600