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Cranes Woodworking Company is considering the addition of a new line of quilt frames to its current product lines. If the new quilt frames are

Cranes Woodworking Company is considering the addition of a new line of quilt frames to its current product lines. If the new quilt frames are added to Cranes production, contribution margin of the other products is expected to drop by $3,300. Crane has summarized the projected revenue and cost for the new line of frames.

Annual sales

330 units

Selling price per unit

$380

Variable costs per unit

Manufacturing

310

Selling

18

Avoidable fixed costs per year

Production

4,300

Selling

5,300

Allocated common fixed costs per year

2,900

If Crane adds the new quilt frame to its line of products, what will be the increase in operating income? Increase in operating income $enter a dollar amount

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