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:

Select one:

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.