It Costs Lannon Fields $28 of Variable Costs and $12

Multiple Choice

It costs Lannon Fields $28 of variable costs and $12 of allocated fixed costs to produce an industrial trash can that sells for $60. A buyer in Mexico offers to purchase 3,000 units at $36 each. Lannon Fields has excess capacity and can handle the additional production. What effect will acceptance of the offer have on net income?

A) Decrease $12,000
B) Increase $12,000
C) Increase $108,000
D) Increase $24,000