Hindmarsh Company is manufacturing 1,000 units of a product. The present costs and sales data are as follows: Selling price per unit $10 Variable costs per unit $5 Fixed costs $4,000 The management is considering the following two alternatives: (i) To accept an export order for another 250 units at $8 per unit. The expenditure of the export order will increase the fixed costs by $700. (ii) To reduce the production from the current 1,000 units to 800 units and to buy 200 units from the market at $7.50 per unit. Under this option fixed costs would decline by $600. Which alternative should management accept?