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 6,900 units Selling price per unit $275 Variable costs per unit: Production $139 Selling $34 Avoidable fixed costs per year: Production $46,400 Selling $66,400 Allocated common fixed costs per year $46,900 If the new cabinets are added, it is expected that the contribution margin of other product lines at the cabinet shop will drop by $23,800 per year. If the new cabinet product line is added next year, the increase in net operating income resulting from this decision would be: $544,100 $703,800 $591,000 $567,200 The Immanuel Company has just obtained a request for a special order of 6,700 jigs to be shipped at the end of the month at a selling price of $14 each. The company has a production capacity of 90,000 jigs per month with total fixed production costs of $144,000. At present, the company is selling 80,000 jigs per month through regular channels at a selling price of $25 each. For these regular sales, the cost for one jig is: Variable production cost $6.70 Fixed production cost $3.20 Variable selling expense $4.50 If the special order is accepted, Immanuel will not incur any selling expense; however, it will incur shipping costs of $0.30 per unit. Total fixed production cost would not be affected by this order. Suppose that regular sales of jigs total 85,000 units per month. All other conditions remain the same. If Immanuel accepts the special order, the change in monthly net operating income will be (Do not round your intermediate calculations): $23,440 increase $21,450 decrease $23,460 decrease $48,910 increase