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Qin Company is considering adding a new type of product, Product R, to its product lines. Below are revenue and variable-cost estimates prepared to help

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Qin Company is considering adding a new type of product, Product R, to its product lines. Below are revenue and variable-cost estimates prepared to help analyze this possible product introduction: $20 Annual Sales 12,500 units Selling price per unit $50 Unit variable costs: Production Selling $3 If Product Ris introduced, the product line will include $110,000 in annual fixed cost, composed of $27,000 in newly incurred fixed costs in production: $33,000 in newly incurred fixed costs in sales; and $50,000 in allocated corporate-level costs (reducing allocation to other product lines by $50,000). Also, if Product Ris introduced, it will likely boost sales of Qin Company's current products, increasing the total contribution margin from current products by $26,000. (Q.) What is the change in the company's net operating income if the new product is introduced? (Key in a positive number if it is an increase, a negative number if it is a decrease.) (A.) $

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