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

Sales (8,000 units at $19.10)				$	152,800
Variable manufacturing costs	$	82,400
Fixed manufacturing costs		14,100
Variable administrative expenses		8,400
Fixed selling and administrative expenses		19,100			(124,000	)
Operating income				$	28,800

A foreign company offers to buy 2,000 units at $12.65 per unit. In addition to variable manufacturing and administrative costs, selling these units would increase fixed overhead by $1,510 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

• Increase by $2,600.

• Increase by $1,090.

• Decrease by $5,700.

• Decrease by $4,110.

• Decrease by $1,510.