Use the following data for questions 17, 18, & 19

Island Novelties makes two productsHawaiian Fantasy and Tahitian Joy. Each product's selling price, variable expense per unit and annual sales volume are as follows:

	Hawaiin Fantasy	Tahitian Joy
Selling Price Per Unit	$15	$100
Variable Expense Per Unit	$9	$20
Number of Units Sold Annually	20,000	5,000

Fixed expenses total of $475,800 per year.

17. Assuming the sales mix given above, calculate the Net Operating Income for the company.

18. The company has developed a new product called Samoan Delight that sells for $45 each and that has variable expenses of $36 per unit. If the company can sell 10,000 units of Samoan Delight without incurring any additional fixed expenses: Calculate the New Net Operating Income for the company.

19. Did the Net Operating Income Increase or Decrease after the company added a new product?