A company wants to add a new line to an already profitable business. Research indicates that the new line would generate $30,000 in revenue when 25,000 units are produced. If added net income would... a. Increase $3750 b. Increase $8750 c. Decrease $2500 d. Decrease $3250 e. None of the above $0.85/unit $5,000 Indirect fixed cost that is currently in place (unavoidable) $6,250 Variable cost Additional Direct Cost (avoidable) Cecil Company has 3 products stamps, paper, and ribbons. And while the business is profitable overall, they are losing money on the stamps line. If Cecil Company abandons stamps, net ncome would.. a. b. c. d. e. Increase $3,000 Decrease $3,000 Decrease $6,000 Decrease $8,000 None of the above Sales Revenue Variable Cost Direct Fixed Cost (avoidable) Indirect Fixed cost allocated from other parts of business Net Income (loss) $27,000 $19,000 $5,000 $6,000 ($3,000)