Falcon Co. produces a single product. Its normal selling price is $28 per unit. The variable costs are $17 per unit. Fixed costs are $20,600 for a normal production run of 5,000 units per month. Falcon received a request for a special order that would not interfere with normal sales. The order was for 1,640 units with a special price of $21 per unit. Falcon has the capacity to handle the special order, and for this order, a variable selling cost of $2 per unit would be eliminated.

If the order is accepted, what would be the impact on net income?

a.decrease of $5,904

b.increase of $7,872

c.increase of $12,792

d.increase of $9,840