1) Bahrain Company has a current production capacity level of 200,000 units per month. At this level of production, variable costs are 80.60 per unit and fixed costs are $0.50 per unit. Current monthly sales are 173,000 units. Saudia Company has contacted Bahrain Company about purchasing 20,000 units at $1.00 each. Current sales would not be affected by the special order and no additional fixed costs would be incurred on the special order. Variable costs would increase $0.20 per unit with the special order. If the order is accepted, what is Bahrain Company's change in profits? $4.000 increase in profits $4.000 decrease in profits 56,000 increase in profits $6,000 decrease in profits