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

Sales (8,000 units at $19.60)				$	156,800
Variable manufacturing costs	$	84,400
Fixed manufacturing costs		14,600
Variable selling and administrative expenses		10,400
Fixed selling and administrative expenses		19,600			(129,000	)
Operating income				$	27,800

A foreign company whose sales will not affect Markson's market offers to buy 2,000 units at $13.40 per unit. In addition to variable manufacturing costs, selling these units would increase fixed overhead by $1,560 for the purchase of special tools. Marksons annual productive capacity is 12,000 units. If Markson accepts this additional business, its profits will:

Multiple Choice

• Decrease by $1,560.

• Increase by $1,540.

• Decrease by $4,660.

• Decrease by $5,450.

• Increase by $3,100.