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VW Enterprises operates three product lines. The most recent product line (division) income statements are as follows: A B C Total Sales $ 1,250,000 $ 2,000,000 $ 1,750,000 $ 5,000,000 Variable expenses 1,000,000 1,700,000 1,312,500 4,012,500 Contribution margin (CM) 250,000 300,000 437,500 987,500 Fixed expenses 500,000 400,000 120,000 1,020,000 Net income $ (250,000) $ (100,000) $ 317,500 $ (32,500) Sales mix 25.00% 40.00% 35.00% 100.00% CM ratio 20.00% 15.00% 25.00% With Product Lines A & B appearing unprofitable, VW has decided to add Product Line D which has an expected contribution margin ratio of 22.0%. VW management believes the addition of Product Line D will increase TOTAL sales to $5.5 million. The new Product D sales also will impact the sales of Products A, B & C. The revised sales mix shows; A=15%, B=45%, and C=30%, respectively. Product D accounts for the remaining sales. Additionally, the contribution margin ratio for Products A, B & C will remain constant. Of the original fixed expenses, 10% will be eliminated. However, Product D will add $100,000 new fixed expenses to the division. What impact will the addition of Product D have on income? O $33,250 income increase O $84,250 income increase O $130,500 income increase O $181,500 income increase