Wallyworld Company Manufactures a Product with the Following Costs Per

Multiple Choice

Wallyworld Company manufactures a product with the following costs per unit at the expected production level of 84,000 units: $\begin{array}{lr}\text { Direct materials } & \$ 12 \\\text { Direct labor } & 36 \\\text { Variable manufacturing overhead } & 18 \\\text { Fixed manufacturing overhead } & 24\end{array}$ The company has the capacity to produce 90,000 units. The product regularly sells for $120.
If a wholesaler offered to buy 4,500 units for $100 each, the effect of the special order on income would be a

A) $450,000 increase.
B) $45,000 increase.
C) $153,000 increase.
D) $90,000 decrease.