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Falcon Co. produces a single product. Its normal selling price is $29 per unit. The variable costs are $16 per unit. Fixed costs are $21,200

Falcon Co. produces a single product. Its normal selling price is $29 per unit. The variable costs are $16 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 1,370 units with a special price of $20 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 profit?

a.decrease of $4,932

b.increase of $6,576

c.increase of $10,686

d.increase of $8,220

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