Joseph Company incurs per$-$unit costs of $$11$ in variable costs and $$4$ in fixed costs to produce its main product, which sells for $$24.$ Joseph Company currently has no excess capacity.

A new customer in the market, Katherine, offers to purchase $2,500$ units at $$16$ each.

If the special order is accepted, Joseph Company would have to produce the units for Katherine with capacity that was otherwise being used to produce units for their current customers.

From a financial perspective, which of the following is true regarding the decision of whether Joseph Company should accept Katherine$$s special order?

Joseph should accept the offer, because each unit sold to Katherine would increase profit by $$5.$

Joseph should accept the offer, because each unit sold to Katherine would increase profit by $$1.$

Joseph is indifferent because fixed costs would be the same regardless.

Joseph should decline the offer, because each unit sold to Katherine would decrease profit by $$8.$