Green T-shirt

Green T-shirt Company has received a special one-time order for 15,000 T-Shirts at $2.20 per unit. Green T-shirt Company currently produces and sells 75,000 units at $6.20 each. This level represents 80% of its capacity. These T-Shirts would be marketed under the wholesaler's name and would not affect Green T-shirt Company's sales through its normal channels. Production costs for these units are $3.50 per unit, which includes $1.85 variable cost and $1.65 fixed cost. If Green T-shirt Company accepts this additional business, the effect on net income will be: $27,750 decrease $27,750 increase $5250 increase $33,000 increase