The Cabinet Shoppe is considering the addition of a new line of kitchen cabinets to its current product lines. Expected cost and revenue data for the new cabinets are as follows:

Annual sales	6,400 units
Selling price per unit	$250
Variable costs per unit:
Production	$134
Selling	$29
Avoidable fixed costs per year:
Production	$45,900
Selling	$65,900
Allocated common fixed costs per year	$46,400

If the new cabinets are added, it is expected that the contribution margin of other product lines at the cabinet shop will drop by $22,800 per year. If the new cabinet product line is added next year, the increase in net operating income resulting from this decision would be:

$422,200

$445,000

$556,800

$398,600