Belfry Company makes special equipment used in cell towers. Each unit sells for $400. Belfry produces and sells 12,600 units per year. They have provided the following income statement data:

Traditional Format		Contribution Format
Revenue	$5,040,000	Revenue	$5,040,000
Cost of goods sold	2,800,000	Variable costs:
Gross profit	2,240,000	Manufacturing	800,000
Selling & admin. expenses	725,000	Selling & admin.	500,000
		Contribution margin	3,740,000
		Fixed costs:
		Manufacturing	2,000,000
		Selling & admin.	225,000
Operating income	$1,515,000	Operating income	$1,515,000

A foreign company has offered to buy 80 units for a reduced sales price of $350 per unit. The marketing manager says the sale will not affect the company's regular sales. The sales manager says that this sale will require variable selling and administrative costs. The production manager reports that it would require an additional $25,000 of fixed manufacturing costs to accommodate the specifications of the buyer. If Belfry accepts the deal, how will this impact operating income? (Round any intermediate calculations to the nearest cent, and your final answer to the nearest dollar.)

A)	Operating income will increase by $5254.

B)	Operating income will increase by $28,000.

C)	Operating income will decrease by $5254.

D)	Operating income will decrease by $19,746.