Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions
JJ Enterprises currently manufactures two products, A and B. It is considering adding a new product, Product C. The following table shows current information for products A and B, as well as projected data for Product C.
*NOTE: If Product C is produced, one-fourth of the company's common costs, which are fixed costs, will be allocated to Product C, with one-half and one-fourth allocated to products A and B, respectively.
-The incremental income in the decision whether or not to manufacture Product C is:

A) $200,000
B) $135,000
C) $ 70,000
D) $ 62,500