Benjamin Company had the following results of operations for the past year: $ 156,000 Sales (16,000 units at $9.75) Direct materials and direct labor Overhead (20% variable) Selling and administrative expenses (all fixed) Operating income $92,000 12,000 31,500 (135,500) $ 20,500 A foreign company (whose sales will not affect Benjamin's market) offers to buy 3,500 units at $6.95 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $550 and selling and administrative costs by $250. Assuming Benjamin has excess capacity and accepts the offer, its profits will: Increase by $3,675. Decease by $4,200. Increase by $2,875. O Increase by $4,200. O Increase by $24,325