A company builds custom$-$designed machinery. A review of selected data and the company$$s pricing policies revealed the following.

A $10\%$ commission is paid on all sales orders.

Variable and fixed factory overheads total $40\%$ and $20\%,$ respectively, of direct labor.

Corporate administrative costs amount to $10\%$ of direct labor.

When bidding on jobs, the company adds a $25\%$ markup to the total of all factory and administrative costs to cover income taxes and produce a profit.

The firm$$s income tax rate is $40\%.$

The company expects to operate at a maximum of $80\%$ of practical capacity.

The company recently received an invitation to bid on the manufacture of some custom machinery for a customer. For this project, the company$$s production accountants estimate the material and labor costs will be $$66,000$ and $$120,000,$ respectively. Accordingly, the company submitted a bid to the customer in the amount of $$375,000.$ Feeling the company$$s bid was too high, the customer countered with a price of $$280,000.$ Which one of the following options should be recommended to the company$$s management?

A$.$

Reject the counteroffer even though the order will increase operating income.

B$.$

Accept the counteroffer because the order will increase operating income.

C$.$

Accept the counteroffer even though the order will decrease operating income.

D$.$

Reject the counteroffer because the order will decrease operating income.