15. Elhard Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 40,000 units per month is as follows: Direct materials. $18.00 Direct labor. $6.80 Variable manufacturing overhead. $2.40 Fixed manufacturing overhead... $11.60 Variable selling & administrative expense. $1.90 Fixed selling & administrative expense. $5.10 The normal selling price of the product is $50 per unit. An order has been received from an overseas customer for 2,000 units to be delivered this month at a special discounted price of $30 per unit. This order would have no effect on the company's total amount of fixed costs. However, the variable selling and administrative expense would be $0.50 less per unit on this Page 7 of 10 order than on normal sales. The company would also incur an extra $750 to deliver the products to the overseas customer. By how much would total company profits increase or decrease if they accept the special order and what should they do? A) Reject because profits will decrease by $31,350. B) Reject because profits will decrease by $30,600. C) Accept because profits will increase by $3,850. D) Accept because profits will increase by $2,050. E) Accept because profits will increase by $1,050