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

Sales (16,000 units at $10.00) $ 160,000

Variable costs

Direct materials 32,000

Direct labor 64,000

Overhead 3,200

Contribution margin 60,800

Fixed costs Fixed overhead 12,800

Fixed selling and administrative expenses 32,000

Income $ 16,000

A foreign company (whose sales will not affect Benjamins market) offers to buy 4,000 units at $7.50 per unit. In addition to variable costs, selling these units would increase fixed overhead by $600 and fixed selling and administrative costs by $300. Assuming Benjamin has excess capacity and accepts the offer, its profits will:

a.Increase by $30,000.

b.Increase by $6,000.

c.Decrease by $6,000.

d.Increase by $5,200.

e.Increase by $4,300.