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17 A company is considering adding a new product to its product line. Below are revenue and variable-cost estimates prepared to help analyze this possible product introduction: Annual sales 4,000 units. Selling price per unit $128 Unit variable costs: $68 Production Selling $22 If the new product is introduced, the product line will include $70,000 in annual fixed cost, composed of $23,000 in newly incurred fixed costs in production; $27,000 in newly incurred fixed costs in sales; and $20,000 in allocated corporate-level costs (reducing allocation to other product lines by $20,000). Also, if the new product is introduced, it will likely lower sales of the company's current products, reducing the total contribution margin from current products by $8,000. What will be the effect on the company's net operating income if the new product is introduced? A. S 74,000 increase $ 94,000 increase B. C. S 102,000 increase D. S 144,000 increase None of the above. E