Johnson Produces 7,000 Skateboards Each Month, Which It Sells for $60

Multiple Choice

Johnson produces 7,000 skateboards each month, which it sells for $60 each. Variable costs are $25 per unit, and fixed costs are $95,000 per month. A Canadian company has offered to buy an additional 1,000 skateboards for $30 per unit. Assuming that normal sales volume and fixed costs remain unchanged, filling this special order will cause Johnson's operating income to:

A) Decrease by $30,000.
B) Decrease by $6,250.
C) Decrease by $5,000.
D) Increase by $5,000.