29. Lasso Corporation manufactures a product with the following full unit costs at a volume of 4,000 units:

A company recently approached Lasso's management with an offer to purchase 400 units for $500 each. Lasso currently sells the product to dealers for $800 each. Lasso's capacity is sufficient to produce the extra 400 units. No selling expenses would be incurred on the special order. If Lasso's management accepts the offer, profits will:

dIRECT MATERIALS 200

Direct labor 80

Manufacturing overhead ( 30%variable) 150

Selling expenses (50% variable) 50

Administrative expenses (10%) 80

Total er unit 560

Select one:

a. Decrease by $120,000

b. Increase by $66,800

c. Increase by $133,200

d. Decrease by $24,000