Litchfield Design currently operates 7 studios. The firm is considering project A. This project would involve opening another studio. The only potentially relevant costs involve marketing expenses. Without project A, each of the 7 Litchfield Design studios would be allocated annual marketing expenses of 4,276 dollars in 1 year. With project A, each of the 8 studios that would exist would be allocated annual marketing expenses of 4,412 dollars in 1 year. When determining the relevant annual net income of project A for 1 year from now, what is the relevant amount of total costs that should be included in the analysis of project A?
