Jones Co. received an offer to buy 3,800 units of its product for $7.50 per unit. Jones Co. normally produces 12,000 units but only plans to produce and sell 8,000 units in the coming year. The normal sales price is $12 per unit. Unit cost info is:

Direct materials $2.00

Direct labor $3.10

Variable overhead $1.80

Fixed overhead $2.00

Refer to question 27. Jones Co.s warehouse distribution center is operating at full capacity and would have to add capacity costing $1,000 for every 5,000 units to be packed and shipped. Should Jones Co. accept the special order?

a. Yes, because income would increase by $6,320

b. No, because income would decrease by $6,320

c. No, because income would decrease by $3,280

d. Yes, because income would increase by $1,280