1. Falcon Co. produces a single product. Its normal selling price is $27 per unit. The variable costs are $16 per unit. Fixed costs are $18,900 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 1,450 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, the differential effect on profit would be a(n)

   a.increase of $6,960

   b.decrease of $5,220

   c.increase of $8,700

   d.increase of $11,310