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

Sales (19,200 units at $10.00)	$ 192,000
Variable costs
Direct materials	38,400
Direct labor	76,800
Overhead	3,840
Contribution margin	72,960
Fixed costs
Fixed overhead	15,360
Fixed selling and administrative expenses	38,400
Income	$ 19,200

A foreign company (whose sales will not affect Benjamins market) offers to buy 4,800 units at $7.50 per unit. In addition to variable costs, selling these units would increase fixed overhead by $720 and fixed selling and administrative costs by $360. Assuming Benjamin has excess capacity and accepts the offer, its profits will:

• Increase by $7,200.

• Increase by $5,160.

• Increase by $6,240.

• Increase by $36,000.

• Decrease by $7,200.