Hydro Valley Corporation provided the following information regarding its only product--tables:

Selling price per unit$65

Direct materials used150,000

Direct labor225,000

Variable factory overhead140,000

Variable selling and administrative expenses60,000

Fixed factory overhead370,000

Fixed selling and administrative expenses30,000

Units produced and sold20,000

Assuming there is excess capacity, the effect of accepting a special order for 1,000 units at a price of $40.00 per table is that net income would _____.

Group of answer choices

increase by $40,000

increase by $11,250

decrease by $28,750

decrease by $10,000