It costs a company $14 of variable costs and $6 of fixed costs to produce one unit of product ZRX. Product ZRX sells for $30 per unit. An order has been received from an overseas customer for 3,000 units to be delivered this month at price $18 per unit. In order to make the special order the company needed a special machine that cost $15,000. The new machine has no further use after this order. If the special order is accepted and produced with unused capacity, net operating income will:

Select one:

a. decrease $12,000

b. increase $12,000

c. decrease $3,000

d. increase $3,000