1. Falcon Co. produces a single product. Its normal selling price is $26 per unit. The variable costs are $18 per unit. Fixed costs are $22,100 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 1,600 units with a special price of $19 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 $4,800

   b.increase of $6,240

   c.increase of $3,840

   d.decrease of $2,880