Casio manufactures digital watches in Japan and sells them world wide. Each digital watch is sold for for $30. Casio management has determined that the variable cost to produce each digital watch is $14.00. Total fixed costs during the year is $750,000. Another company has offered to buy 3,000 digital watches from Casio at $18 each. Presently there is ample capacity at Casio's facility, which will produce the digital watches, should Casio accept the order. The Casio management has also determined that there is plenty of spare capacity available to produce the 3,000 watches provided its cost beneficial to Casio. If Casio accepts this offer, the effect on its net income will be: decrease by $12,000 increase by $6,000 decrease by $6,000 increase by $12,000