C company has a capacity of 40,000 units per year and is currently selling 35,000 for $400 each. B Company has approached C company about buying 2,000 units for only $300 each. The units would be packaged in bulk, saving C $20 per unit when compared to the normal packaging cost. Normally C company has a variable cost of $280 per unit. The annual fixed cost of $2,000,000 would be unaffected by the special order. What would ne the impact of profits if C co were to accept this special order?

• profits would increase $40,000
• profits would increase $60,000
• profits would decrease $200,000
• profits would increase $80,000