Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $3.40 per unit. Bluebird currently produces and sells 75,000 units at $7.40 each. This level represents 80% of its capacity. Production costs for these units are $4.10 per unit, which includes $2.45 variable cost and $1.65 fixed cost.
If Bluebird accepts this additional business, the effect on net income will be:
a. $51,000 increase.
b. $14,250 increase.
c. $36,750 increase.
d. $10,500 decrease.
e. $36,750 decrease.