Please show clearly answer choice (MCQs) and your calculations

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Questions 33 and 34 are based on the following information. The segmented income statement for a retail company with three product lines is presented below: Total Company Product Line 1 20,000 US $800,000 US $ 60,000 Product Line 2 28,000 US $700,000 Product Line 3 50,000 US $500,000 US $2,000,000 US $ 180,000 US $ 60,000 US $ 60,000 Volume (in units) Sales revenue Costs & expenses: Administrative Advertising Commissions Cost of sales Rent Salaries 84,000 240,000 40,000 96,000 16,000 14,000 980,000 360,000 420,000 60,000 10,000 200,000 56,000 24,000 280,000 110,000 84,000 54,000 140,000 32,000 US $670,000 Total costs & expenses Operating income (loss) US $1,830,000 US $ 170,000 US $750,000 US $(50.000) US $410,000 US $ 90.000 US $130.000 The company buys the goods in the three product lines directly from manufacturers' representatives. Each product line is directed by a manager whose salary is included in the administrative expenses. Administrative expenses are allocated to the three product lines equally because the administration is spread evenly among the three product lines. Salaries represent payments to the workers in each product line and therefore are traceable costs of each product line. Advertising promotes the entire company rather than the individual product lines. As a result, the advertising is allocated to the three product lines in proportion to the sales revenue. Commissions are paid to the salespersons in each product line based on 2% of gross sales. Rent represents the cost of the retail store and warehouse under a lease agreement with 5 years remaining. The product lines share the retail and warehouse space, and the rent is allocated to the three product lines based on the square footage occupied by each of the product lines. 33. The company has an opportunity to promote one of its product lines by making a one-time US $7,000 expenditure. The company can choose only one of the three product lines to promote. The incremental sales revenue that would be realized from this US $7,000 promotion expenditure in each of the product lines is estimated as follows: Increase in Sales Revenue Product Line 1 US $15,000 Product Line 2 20,000 14,000 Product Line 3 In order to maximize profits, the promotion expenditure should be spent on , resulting in an increase in operating income of . List A List B A Product Line 2 US $13,000 B. Product Line 2 US $ 5,000 C. Product Line 3 US $ 1,400 D. Product Line 3 US $ 1,120