(WZCP) operates a successful retailing business for customers looking for Cajun cookbooks and spices. WZCP is now considering a new product line: Cajun and Zydeco music. The company's current financials are as follows:

	Cookbooks	Spices
Sales	8000	2000
Variable Expense	3200	1200
Contribution Margin	4800	800
Fixed Expenses	1500	300
Net Income	3300	500

The new Music Division would generate new sales of $1,500 (variable expenses = 75% of sales, and fixed expenses = $800). The new division would also affect the existing divisions: (1) Cookbook sales would increase 7.50%, and (2) Spices sales would increase 15.0%.

If WZCP ADDS the Music Division, compute the impact on total company net income.

Group of answer choices

Income increases $805

Income increases $55

None of the other answers are correct

Income increases $355

Income decreases $425