Faster Company manufactures a product with the following costsper unit at the expected production level of 45000 units:

Direct materials $12

Direct labor $20

Variable manufacturing overhead $9

Fixed manufacturing overhead $7

The company has the capacity to produce 50000 units. The productregularly sells for $55.

Refer to the Figure above. A wholesaler has offered to pay $45 aunit for 6000 units. If the special order is accepted, the effecton operating income would be a

1. A decrease by $15000

2. B increase by $15000

3. C decrease by $0

4. D decrease by $60000