The Normal Selling Price of Carla Company's Product Is $3

Multiple Choice

The normal selling price of Carla Company's product is $3.00 per unit.The costs of production are: direct materials,$0.20;direct labor,$0.10;variable overhead,$0.40;and fixed overhead,$0.60 (based on normal capacity) .The company has received a special order for 8,000 units at a unit sales price of $1.00.There is ample unused capacity to fill the order.If the order is accepted,operating income will

A) increase by $2,400.
B) decrease by $2,400.
C) increase by $3,600.
D) increase by $8,000.