Falcon Co. produces a single product. Its normal selling price is $30 per unit. The variable costs are $18 per unit. Fixed costs are $21,200 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 1,300 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.increase of $5,200

b.increase of $8,450

c.decrease of $3,900

d.increase of $6,500