The Western Company is considering the addition of a new product to its current product lines. The expected cost and revenue data for the new product are as follows:

Annual sales	4,700 units
Selling price per unit	$394
Variable costs per unit:
Production	$147
Selling	$67
Avoidable fixed costs per year:
Production	$53,000
Selling	$77,000
Unavoidable allocated fixed corporate costs per year	$55,700

If the new product is added to the existing product line, then sales of existing products will decline. As a consequence, the contribution margin of the other existing product lines is expected to drop $89,900 per year. If the new product is added next year, the increase in net operating income resulting from this decision would be:

	$846,000
	$716,000
	$626,100
	$660,300