12. The Western Company is considering the addition of a new product to its current product lines. The expected cost and revenue data for the new product are as follows: Annual sales Selling price per unit Variable costs per unit 3,700 units $344 $137 $57 Production Selling Avoidable fixed costs per year: $51,000 $75,000 $54,700 Production Selling Unavoidable allocated fixed corporate costs per year If the new product is added to the existing product line, then sales of existing products will decline. As a consequence, the contribution margin of the other existing product lines is expected to drop $82,900 per year. If the new product is added next year, the increase in net operating income resulting from this decision would be O $555,000 O $429,000o O $346,100 $374,300