Bidbid Company manufactures a product with a unit variable cost of RO 95 and a unit sales price of RO 220. Fixed manufacturing costs were RO 480,000 when 10,000 units were produced and sold. The company can sell an additional 1,000 units at RO 140 each in a foreign market which would not affect its present sales. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows:

Select one:

a. Income would decrease by RO 35,000.

b. None of the answers are correct.

c. Income would increase by RO 140,000.

d. Income would increase by RO 45,000.

e. Income would increase by RO 40,000.