During the year, Xema Company can produce 350,000 units with total variable costs of $2,450,000 and total fixed costs of $1,575,000. The company expects to sell 290,000 units next year at the normal selling price of $15 each. In addition to this, a special order is placed for 60,000 units to be sold at a 70% of the normal selling price. The total fixed costs will not be affected by this order. This special order will have no effect on the company's regular sales. What is the effect on the company's overall net operating income if the special order is accepted? *

7 points

The overall net operating income will increase by $210,000

The overall net operating income will increase by $1,225,000

The overall net operating income will decrease by $60,000

The overall net operating income will decrease by $1,365,000

None of the above