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Bailey Corporation makes a product that sells for $126. It is operating at 20,000 units below capacity. Costs are: Variable manufacturing $25 per unit Variable

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Bailey Corporation makes a product that sells for $126. It is operating at 20,000 units below capacity. Costs are: Variable manufacturing $25 per unit Variable selling & administrative $10 per unit Fixed manufacturing $2,400.000 Fixed selling & administrative $900,000 A special order has been received for 3,000 units at a price of $80 each. For this order, variable selling and administrative costs would be $2 per unit. The order would have no effect on fixed costs. How much would the company's net operating income increase or decrease by accepting the order

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