2....MarigoldCompany is a leading manufacturer of sunglasses. One ofMarigold's products protects the eyes from ultraviolet rays. An upscale sporting goods store has contactedMarigoldabout purchasing28,900pairs of these sunglasses.Marigold's unit manufacturing cost, based on a full capacity of244,000units, is as follows:

Direct materials $6

Direct labor 4

Manufacturing overhead (75% fixed) 27

Total manufacturing costs $37

Marigoldalso incurs selling and administrative expenses of $74,400plus $2per pair for sales commissions. The company has plenty of excess manufacturing capacity to use in manufacturing the sunglasses.Marigold's normal price for these sunglasses is $40per pair. The sporting goods store has offered to pay $32per pair. Since the special order was initiated by the sporting goods store, no sales commission will be paid.

What would be the effect onMarigold's income if the special order were accepted?

a. Marigold income would increase or decrease by $________