QUESTION 11 Markson Company had the following results of operations for the past year. Sales (8000 units at $20.30) $ 162,400 Variable manufacturing costs $ 87,200 Fixed manufacturing costs 15,300 Variable administrative expenses 13,200 Fixed selling and administrative expenses 20,300 (136,000) Operating income $ 26,400 A foreign company offers to buy 2000 units at $14.45 per unit. In addition to variable manufacturing and administrative costs, selling these units would increase fixed overhead by $1630 for the purchase of special tools. Markson's annual productive capacity is 12,000 units. If Markson accepts this additional business, its profits will: O Increase by $3800 O Increase by $2170. Decrease by $5100 O Decrease by $5430. O Decrease by $1630