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

Contribution margin income statement Per Unit Annual Total

A foreign company offers to buy $3,300$ units at $$14$ per unit. In addition to variable

manufacturing and administrative costs, selling these units would increase fixed

overhead by $$2,640$ for the purchase of special tools. Markson's annual productive

capacity is $15,900$ units. If Markson accepts this additional business, its profits will:

a$.$ Increase by $$5,775.$

b$.$ Decrease by $$10,200.$

C$.$ Decrease by $$2,640.$

d$.$ Increase by $$3,135.$

e$.$ Decrease by $$8,415.$ operations for the past year:

Contribution margin income statement Per Unit Annual Total

Sales $(10,600$ units$)$ $ $20\mathrm{.}00$ $ $212,000$

Variable costs

Direct materials $4\mathrm{.}2545,050$

Direct labor $6\mathrm{.}0063,600$

Overhead $2\mathrm{.}0021,200$

Contribution margin $7\mathrm{.}7582,150$

Fixed costs

Fixed overhead $4\mathrm{.}2545,050$

Income $ $3\mathrm{.}50$ $ $37,100$

A foreign company offers to buy $3,300$ units at $$14$ per unit. In addition to variable manufacturing and administrative costs, selling these units would increase fixed overhead by $$2,640$ for the purchase of special tools. Markson$$s annual productive capacity is $15,900$ units. If Markson accepts this additional business, its profits will: