Key Corporation Is Considering the Addition of a New Product

Multiple Choice

Key Corporation is considering the addition of a new product. The expected cost and revenue data for the new product are as follows:
If the new product is added, the combined contribution margin of the other, existing products is expected to drop $65,000 per year. Total common fixed corporate costs would be unaffected by the decision of whether to add the new product.
-If the new product is added next year,the financial advantage (disadvantage) resulting from this decision would be:

A) $325,000
B) $200,000
C) $145,000
D) $135,000