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	6,000 units
Selling price per unit	$230
Variable costs per unit:
Production	$130
Selling	$25
Avoidable fixed costs per year:
Production	$45,500
Selling	$65,500
Allocated common fixed costs per year	$46,000

If the new cabinets are added, it is expected that the contribution margin of other product lines at the cabinet shop will drop by $22,000 per year. If the new cabinet product line is added next year, the increase in net operating income resulting from this decision would be:

	$450,000
	$339,000
	$293,000
	$317,000