A company operates a successful retailing business for customers looking for beverage and beer. The company is now considering a new product line: Snacks. The company's current financials are as follows:

	beverage	beer
sales	$8000	$2000
variable expenses	$3200	$1200
contribution margin	$4800	$800
fixed expenses	$1500	$300
net income	$3300	$500

The new Snack division would generate new sales of $1,500 (variable expenses = 75% of sales, and fixed expenses = $800). The new division would also affect the existing divisions: (1) Beverage sales would increase 7.50%, and (2) Beer sales would increase 15.0%.

If the company adds the Snack Division, What's the impact on total company net income?

a. Income decreases $425

b. None of the other answers are correct

c. Income increases $55

d. Income increases $805

e. Income increases $355