Sanderson's Woodworking Company Is Considering the Addition of a New

Sanderson's Woodworking Company is considering the addition of a new line of quilt frames to its current product lines.If the new quilt frames are added to Sanderson's production,contribution margin of the other products is expected to drop by $2,000.Sanderson has summarized the projected revenue and cost for the new line of frames.
$\begin{array}{lr}\text { Annual sales } & 200 \text { units } \\\text { Selling Price per unit } & \$ 250 \\\text { Variable costs per unit } & \\\text { ~~Manufacturing } & \$ 180 \\\text { ~~Selling } & \$ 5 \\\text { Avoidable fixed costs per year } & \\\text { ~~Production } & \$ 3,000 \\\text { ~~Selling } & \$ 4,000 \\\text { Allocated common fixed costs per vear } & \$ 1,600\end{array}$
a.If Sanderson adds the new quilt frame to its line of products,what will be the increase in operating income?
b.What are three issues that Sanderson should consider before adding the new line?