A legal partnership generates a contribution of 35% on its monthly fee income of £380,000. The partners have decided to

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A legal partnership generates a contribution of 35% onits monthly fee income of £380,000. The partners have decided tooffer a new health and safety advisory service in order to increaseawareness of the law practice and increase the client base. The newservice is expected to earn fees of £4,000 per month but alsogenerate a 3% increase fees earned from existing services. The newservice will also earn a 35% contribution but a new health andsafety adviser will need to be employed increasing overheads by£4,000 per month.
The effect of the new service will be to increase thepartnership's monthly profits by
A. £1,390
B. £3,990
C. £5,390
D. £11,400