1. Big Arber Company makes 7,000 chairs for a unit sales price of $80. Variable costs are $30 per unit and annual fixed manufacturing costs total $250,000. The company has a one-time opportunity to sell an additional 3,000 units at $75 each in a different market. If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect income as follows:

   		Income would increase by $27,857.
   		Income would decrease by $27,857.
   		Income would increase by $135,000.
   		Income would increase by $225,000.