Key Corporation is considering the addition of a new product. The expected cost and revenue data for the new product are as follows: Annual sales 2,500 units Selling price per unit 35 304 Variable costs per unit: Production 35 125 Selling $ 49 Avoidable xed costs per year: Production $ 50,000 Selling $ 75,000 Allocated common xed corporate costs per year $ 55,000 If the new product is added, the combined contribution margin of the other, existing products is expected to drop $65,000 per year. Total common xed corporate costs would be unaffected by the decision of whether to add the new product. If the new product is added next year, what is the expected effect on net operating income? Selling $ 75,000 Allocated common xed corporate costs per year $ 55,000 If the new product is added, the combined contribution margin of the other, existing products is expected to drop $65,000 per year. Total common xed corporate costs would be unaffected by the decision of whether to add the new product. If the new product is added next year, what is the expected effect on net operating income? 0 increase $145,000 0 increase $135,000 0 increase $200,000 0 increase $265,000