Elkhorn, Inc., which has excess capacity, received a special order for 4,800 units at a price of $16 per unit. Currently, production and sales are anticipated to be 14,000 units without considering the special order. Budget information for the current year follows.

Sales	$	280,000
Less: Cost of Goods Sold		196,000
Gross Margin	$	84,000

Cost of goods sold includes $28,000 of fixed manufacturing cost. If the special order is accepted, the company's income will:

A. decrease by $9,600.

B. None of the answers is correct.

C. decrease by $19,200.

D. increase by $19,200.

E. increase by $9,600.