Alpha Productions produces computer cables specifically for accountants within the United States. These special cables are what give accountants their superpowers. Once cable in$$ particular, a video display$$ cable, is sold to customers at a price of$$ $$20$ per cable. The company currently produces$75,000$ video cables each$$ year, which represents$80\%$ of the total capacity available for production. At the current level of$$ production, the cost of producing and selling a single video cable are as$$ follows:

Variable Product Costs $$5\mathrm{.}00$

Fixed Product Costs $$2\mathrm{.}50$

Variable Period Costs $$1\mathrm{.}00$

Fixed Period Costs $$0\mathrm{.}50$

A 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 for$20,000$ video cables. Because this is such a large$$ order, the European accountants expect a bulk$$ discount, and expect to pay$$ $$17\mathrm{.}00$ per cable. The specifications for the cables are different from the regular video cables produced. As$$ such, unit variable costs per unit will decrease by$$ $$0\mathrm{.}50$ per unit. Because of the new$$ specifications, engineers were required to rework the design of the$$ cables, incurring costs of$$ $$3,000$ to do so$.$ The variable period costs consist solely of sales$$ commissions, 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 is$$ accepted?

Question $5$ options:

Increase by$$ $$229,500$

Increase by$$ $$247,000$

Increase by$$ $$209,500$

Increase by$$ $$189,500$

Increase by$$ $$199,500$

Question $6(2$ points$)$