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Alpha Productions produces computer cables specifically for accountants within the United States. These special cables are what give accountants their superpowers. Once cable in particular

Alpha Productions produces computer cables specifically for accountants within the United States. These special cables are what give accountants their superpowers. Once cable inparticular, a video displaycable, is sold to customers at a price of$20 per cable. The company currently produces70,000 video cables eachyear, which represents80% of the total capacity available for production. At the current level ofproduction, the cost of producing and selling a single video cable are asfollows:Variable Product Costs$4.00Fixed Product Costs$2.00Variable Period Costs$1.00Fixed Period Costs$0.50A group of accountants from Europe have approached Alpha Productions to place a special order for video cables for the accountants in Europe. This special order is for20,000 video cables. Because this is such a largeorder, the European accountants expect a bulkdiscount, and expect to pay$16.50 per cable. The specifications for the cables are different from the regular video cables produced. Assuch, unit variable costs per unit will decrease by$0.50 per unit. Because of the newspecifications, engineers were required to rework the design of thecables, incurring costs of$3,000 to do so. The variable period costs consist solely of salescommissions, which will not be incurred with the special order. Other fixed period costs will not change if the special order is accepted.By how much will operating income change if the special order isaccepted?A.Increase by$257,000B.Increase by$189,500C.Increase by$219,500D.Increase by$199,500E.Increase by$209,500

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