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

Sales (12,000 units at $12)				$	144,000
Direct materials and direct labor	$	84,000
Overhead (20% variable)		12,000
Selling and administrative expenses (all fixed)		16,800			(112,800	)
Operating income				$	31,200

A foreign company (whose sales will not affect Benjamins market) offers to buy 3,000 units at $9.60 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $670 and selling and administrative costs by $700. Assuming Benjamins productive capacity is 12,000 units per year and accepts the offer, its profits will:

a. Decrease by $8,570

b. Increase by $3,700

c. (Incorrect) Increase by $5,830

d. Decrease by $24,000

e. Decrease by $7,200

I tried to work this question out on my own following a question similar to this one and I ended up getting increasing by $1,840... If you answer please write out how you got everything so I can learn how to do it. Thank you!