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: If the new cabinets are added, it is expected that the contribution margin of other product lines at the cabinet shop will drop by $20,000 per year.

-If the new cabinet product line is added next year,the increase in net operating income resulting from this decision would be:
A)$80,000
B)$225,000
C)$125,000
D)$105,000

Question

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:

If the new cabinets are added, it is expected that the contribution margin of other product lines at the cabinet shop will drop by $20,000 per year.

-If the new cabinet product line is added next year,the increase in net operating income resulting from this decision would be:

-If the new cabinet product line is added next year,the increase in net operating income resulting from this decision would be:
A)$80,000 
B)$225,000 
C)$125,000 
D)$105,000

Quizplus · Accepted Answer

The Answer of  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:  If the new cabinets are added, it is expected that the contribution margin of other product lines at the cabinet shop will drop by $20,000 per year.

-If the new cabinet product line is added next year,the increase in net operating income resulting from this decision would be:
A)$80,000 
B)$225,000 
C)$125,000 
D)$105,000

The Cabinet Shoppe Is Considering the Addition of a New