Potlatch Company Manufactures sonars for fishing boats. It's model 100 sells for $300. Potlatch produces and sells 5,000 of them per year. Cost data are as follows:

Variable Manufacturing~~~~~~~$95 Per Unit

Variable Marketing~~~~~~~~~~$7 per unit

Fixed Manufacturing~~~~~~~~~$280,000 per year

Fixed Marketing and Admin~~~$140,000 per year

An offer has come in for a one - time sale of 300 units at a special price of $140 per unit. The marketing manager says that the sale will not negatively affect the company's regular sales activities, and it will not require any variable marketing costs. The production manager says that there is plenty of excess capacity and the deal will not impact fixed costs in any way. What is the effect of this deal on operating income?

A) Operating income increases by $13,500

B) decreases by $13,500

C) increases by $300

D) increases by $2,100