Fulton Company has a maximum capacity level of 65,000 units per month. Each unit regularly sells for $7. Unit costs at this level are:

Direct materials $0.55

Direct labor $0.80

Variable overhead $0.20

Fixed overhead $0.25

Marketing - fixed $0.35

Marketing variable $0.45

Current monthly sales are 65,000 units. Cherokee Company has contacted Fulton Company about purchasing 7,000 units at $4.50 each. The special order would require $1 per unit for shipping. Fulton is now selling 65,000 units through regular channels each period, which require $0.40 per unit for shipping. Marketing costs would not be incurred on the special order.

What is Fulton Companys change in operating profits if the special order is accepted?

Question options:

	$18,550 decrease
	$17,850 increase
	$4,750 decrease
	$13,650 increase