It Costs Maker Company $22 of Variable and $15 of Fixed

Multiple Choice

It costs Maker Company $22 of variable and $15 of fixed costs to produce one Panini press which normally sells for $57. A foreign wholesaler offers to purchase 1000 Panini presses at $40 each. Maker would incur special shipping costs of $5 per press if the order were accepted. Maker has sufficient unused capacity to produce the 1000 Panini presses. If the special order is accepted what will be the effect on net income?

A) $13000 decrease
B) $13000 increase
C) $22000 decrease
D) $7000 increase