Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $2.80 per unit. Bluebird currently produces and sells 75,000 units at $6.80 each. This level represents 80% of its capacity. These bird feeders would be marketed under the wholesalers name and would not affect Bluebirds sales through its normal channels. Production costs for these units are $3.60 per unit, which includes $2.15 variable cost and $1.45 fixed cost. If Bluebird accepts this additional business, the effect on net income will be:

Multiple Choice

• $9,750 increase.

• $32,250 increase.

• $12,000 decrease.

• $32,250 decrease.

• $42,000 increase.