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

Sales (19,200 units at $18)				$	345,600
Direct materials and direct labor	$	134,400
Overhead (20% variable)		19,200
Selling and administrative expenses (all fixed)		26,880			(180,480	)
Operating income				$	165,120

A foreign company (whose sales will not affect Benjamins market) offers to buy 4,800 units at $14.40 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $850 and selling and administrative costs by $510. Assuming Benjamins productive capacity is 19,200 units per year and accepts the offer, its profits will:

Multiple Choice

• Decrease by $17,280.

• Decrease by $18,640.

• Decrease by $ 147,840.

• Increase by $ 15,920.

• Increase by $ 5,310.