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Martin Incorporated provided the following information regarding its onlyproduct: Sale price per unit -- $50.00 Direct materials used -- $ 164,000 Direct labor incurred --

Martin Incorporated provided the following information regarding its onlyproduct:

Sale price per unit -- $50.00

Direct materials used -- $ 164,000

Direct labor incurred -- $186,000

Variable manufacturing overhead -- $122,000

Variable selling and administrative expenses -- $73,000

Fixed manufacturing overhead -- $65,000

Fixed selling and administrative expenses -- $12,000

Units produced and sold -- 20,000

Assume no beginning inventory

Assuming there is excesscapacity, what would be the effect on operating income of accepting a special order for 5,400 units at a sale price of $43 perproduct? (NOTE: Assume regular sales are not affected by the special order. Round any intermediary calculations to the nearestcent.)

A.

Increase by $85,050

B.

Increase by $379,350

C.

Increase by $232,200

D.

Decrease by $ 85,050

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