Dakota Corporation Has Been Producing and Selling 42,000 Hats a Year.The

Multiple Choice

Dakota Corporation has been producing and selling 42,000 hats a year.The Dakota Corporation has the capacity to produce 52,000 hats with its present facilities.The following information is also available: $\begin{array}{lr}\text { Selling price per unit } & \$ 30 \\\text { Variable costs per unit: } \\\text { Manufacturing } & 13 \\\text { Selling and Administrative } & 7 \\\text { Fixed costs in total: } \\\text { Manufacturing } & \$ 128,000 \\\text { Selling and Administrative }& 56,000\\\end{array}$ If a special order is accepted for 10,000 hats at a price of $25 per unit, net income would _____.

A) increase by $90,000
B) increase by $250,000
C) increase by $120,000
D) decrease by $24,000