Newell Company presently has three product lines: paper, stamps, and printer ink. The company is considering adding a new line of pens. Market research shows the following expected revenues and costs if the pen line were added: If pens are added as a product line, it is expected that the other lines will have a decrease in contribution margin of $7,000. Given this information, if Newell adds the pen line, net income would increase by:

Question

Newell Company presently has three product lines: paper, stamps, and printer ink. The company is considering adding a new line of pens. Market research shows the following expected revenues and costs if the pen line were added:  If pens are added as a product line, it is expected that the other lines will have a decrease in contribution margin of $7,000. Given this information, if Newell adds the pen line, net income would increase by:

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The Answer of Newell Company presently has three product lines: paper, stamps, and printer ink. The company is considering adding a new line of pens. Market research shows the following expected revenues and costs if the pen line were added:  If pens are added as a product line, it is expected that the other lines will have a decrease in contribution margin of $7,000. Given this information, if Newell adds the pen line, net income would increase by:

Newell Company Presently Has Three Product Lines: Paper, Stamps, and Printer