The Normal Selling Price of Our Product Is $42 Per

Multiple Choice

The normal selling price of our product is $42 per unit.The costs of production are direct materials,$8; direct labor,$6; variable overhead,$7; and fixed overhead,$4 (based on normal capacity) .The company has received a special order for 10,600 units at a unit sales price of $23.There is ample unused capacity to fill the order and $1 per unit will be incurred for additional freight costs.If the order is accepted,operating income will

A) increase by $10,600.
B) decrease by $31,800.
C) increase by $21,200.
D) decrease by $21,200.