Bottle Incorporated provided the following information regarding its single$$ product:

Direct materials used

$ $210$ comma $000$

Direct labor incurred

$ $470$ comma $000$

Variable manufacturing overhead

$ $130$ comma $000$

Fixed manufacturing overhead

$$$$100,000$

Variable selling and administrative expenses

$ $60$ comma $000$

Fixed selling and administrative expenses

$$$$20,000$

The regular selling price for the product is$$ $$80.$ The annual quantity of units produced and sold is $45$ comma $000$ units$($the costs above relate to the $45$ comma $000$ units production$$ level$).$ The company has excess capacity and regular sales will not be affected by this special order. There was no beginning inventory.

What would be the effect on operating income of accepting a special order for $5$ comma $000$ units at a sale price of $ $60$ per$$ product? $($Round any intermediary calculations to the nearest$$ cent.$)$

Question content area bottom

Part $1$

A$.$

Decrease by $ $203$ comma $350$

B$.$

Increase by $ $396$ comma $650$

C$.$

Increase by $ $203$ comma $350$

D$.$

Decrease by $ $396$ comma $650$