13. Collegiate Products produces and sells padded stadium seats emblazoned with university logos. Thecompany has the capacity to produce as many as 6,000 seats per month but consistently averagesmuch less. When 4,500 seats are produced, each seat has $5 of variable costs and $2 of fixedoverhead costs allocated to it. The seats typically sell for $25 each. The company has beenapproached by NCSU who wishes to purchase 500 seats for special alumni at a price of $5 per seat. Ifthe special order were accepted, net income would: A. decrease by $1,000.B. increase by $2,500.C. decrease by $12,500.D. not change.***