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

Sales (16,000 units at $10.25)		$164,000
Direct materials and direct labor	$100,000
Overhead (20% variable)	20,000
Selling and administrative expenses (all fixed)	32,500	(152,500)
Operating income		$11,500

A foreign company (whose sales will not affect Benjamin's market) offers to buy 4,500 units at $8.05 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $650 and selling and administrative costs by $350. If Benjamin accepts the offer, its profits will:

Increase by $5,975.

Increase by $8,100.

Increase by $36,225.

Increase by $6,975.

Decease by $8,100.