Missoula Industries manufactures a product with the following costs per unit at the expected production of 30,000 units:

Direct materials $ 5

Direct labor 15

Variable manufacturing overhead 8

The company has the capacity to produce 60,000 units. The product regularly sells for $45. A wholesaler has offered to pay $40 each for 2,000 units.

If the special order is accepted, the effect on Missoula's operating income would be a

$12,000 decrease

$24,000 increase

$34,000 increase

$10,000 decrease