Bridge Industries Manufactures a Product with the Following Costs Per

Multiple Choice

Bridge Industries manufactures a product with the following costs per unit at the expected production of 78,000 units: $\begin{array}{lr}\text { Direct materials } & £ 15 \\\text { Direct labour } & 22 \\\text { Variable manufacturing overhead } & 12 \\\text { Fixed manufacturing overhead } & 19\end{array}$ The company has the capacity to produce 80,000 units. The product regularly sells for £90. A wholesaler has offered to pay £75 each for 2,000 units. If Bridge's special order is accepted, the effect on operating income would be a

A) £20,000 decrease.
B) £52,000 increase.
C) £14,000 increase.
D) none of the above.