New Castle Company has the following data about its only product:

Fixed manufacturing costs$72,000

Fixed selling and administrative costs$ 80,000

Variable manufacturing costs$1,030,000

Variable selling and administrative costs$120,000

Selling price(per unit)$125

Units produced and sold23,000

Assume there is excess capacity.The company has received a special order for 1,000 units at $80.00 per unit.If the special order is accepted, what will be the effect on operating income?

Group of answer choices

net income increases $30,000

net income increases $35,220

net income increases $80,000

$26,870