Cornish Company had the following results of operations for the past year:

Sales (20,000 units at $22)$440,000 Direct materials and direct labor$200,000Overhead (40% variable)100,000Selling and administrative expenses (all fixed)92,000(392,000)Operating income$48,000

A foreign company (whose sales will not affect Cornish's market) offers to buy 3,000 units at $17.00 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $500 and selling and administrative costs by $1,000. If Cornish accepts the offer, its profits will:

Decrease by $4,500.

Increase by $4,500.

Decrease by $300.

Increase by $13,500.

Increase by $15,000.