Benjamin Company had the following results of operations for the past year:

Sales (16,000 units at $9.60)				$	153,600
Direct materials and direct labor	$	89,600
Overhead (20% variable)		9,600
Selling and administrative expenses (all fixed)		31,200			(130,400	)
Operating income				$	23,200

A foreign company (whose sales will not affect Benjamin's market) offers to buy 3,200 units at $6.62 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $520 and selling and administrative costs by $220. Assuming Benjamin has excess capacity and accepts the offer, its profits will:

Multiple Choice

a. Increase by $3,264.

b. Increase by $21,184.

c. Decrease by $3,264.

d. Increase by $2,880.

e. Increase by $2,140.