Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $3.80 per unit. Bluebird currently produces and sells 75,000 units at $7.80 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 $4.70 per unit, which includes $2.65 variable cost and $2.05 fixed cost. If Bluebird accepts this additional business, the effect on net income will be:

Multiple Choice

• $57,000 increase.

• $17,250 increase.

• $39,750 increase.

• $13,500 decrease.

• $39,750 decrease.