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

Sales (16,000 units at $9.55)				$	152,800
Direct materials and direct labor	$	88,800
Overhead (20% variable)		8,800
Selling and administrative expenses (all fixed)		31,100			(128,700	)
Operating income				$	24,100

A foreign company (whose sales will not affect Benjamin's market) offers to buy 3,100 units at $6.51 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $510 and selling and administrative costs by $210. Assuming Benjamin has excess capacity and accepts the offer, its profits will:

Multiple Choice

• Decease by $2,976.

• Increase by $20,181.

• Increase by $2,635.

• Increase by $1,915.

• Increase by $2,976.