Markson Company had the following results of operations for the past year:

Contribution margin income statement	Per Unit	Annual Total
Sales (8,800 units)	$ 20.00	$ 176,000
Variable costs
Direct materials	4.25	37,400
Direct labor	6.00	52,800
Overhead	2.00	17,600
Contribution margin	7.75	68,200
Fixed costs
Fixed overhead	4.25	37,400
Income	$ 3.50	$ 30,800

A foreign company offers to buy 2,400 units at $14 per unit. In addition to variable manufacturing and administrative costs, selling these units would increase fixed overhead by $1,920 for the purchase of special tools. Marksons annual productive capacity is 13,200 units. If Markson accepts this additional business, its profits will:

Multiple Choice

Increase by $4,200.

Decrease by $7,050.

Decrease by $1,920.

Increase by $2,280.

Decrease by $6,120.