4. Ferrie Sports, Inc. manufactures baseballs. The company has the capacity to produce 5,000,000 baseballs per year, but is currently producing and selling 4,000,000 baseballs per year. The following information relates to current production: Sale price per unit $4.00 Variable costs per unit: Manufacturing Marketing and administrative $1.00 $0.25 Total fixed costs: Manufacturing Marketing and administrative $6,000,000 $1,500,000 Ferrie receives a special order for 10,000 baseballs from an MLB team for a promotional giveaway. If the special sales order is accepted, Ferrie will receive $2.00 for each baseball. Fixed costs will increase by $2,000, but Ferrie will not incur the variable marketing and administrative costs on this order. Assuming this order will not affect Ferrie's regular sales, how would operating income be affected? A) Increase by $8,000. B) Increase by $5,500. C) Decrease by $8,000. D) Decrease by $5,500