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 = 5,000 units * Selling price per unit = $180 Variable costs per unit: * Production = $120 * Selling = $15 Avoidable fixed costs per year: * Production = $40,000 * Selling = $60,000 * Allocated common fixed costs per year = $45,000 If the new cabinets are added, it is expected that the contribution margin of other product lines at the cabinet shop will drop by $20,000 per year. Using the information provided in #1, answer the following: If new cabinet product line is added next year, the increase in net operating income resulting from this decision would be: 1) $80,000. 2) $225,000. 3) $125,000. 4) $105,000. show work please