A local science museum normally sells tickets to its museum for $6 each. The daily maximum capacity of the museum is 500 visitors. At the maximum capacity, fixed costs are $3 per visitor and variable costs are $.50 per visitor. A local school group has approached the museum wishing to purchase 25 special passes at a cost of $2.00 each. Assuming the museum has excess capacity, if the special order were accepted, net income would:

a.

increase by $37.50.

b.

decrease by $87.50.

c.

increase by $50.00.

d.

decrease by $37.50.