Question 47 Hoffman Corp.currently sells 40,000 baseball bats to its normal customers, but it has a capacity to produce 50,000 baseball bats. Its product sells for $30 per bat and the variable costs incurred in manufacturing and selling the product are as follows on a per bat basis: Direct materials - $8; Direct labor - $4: Sales commission - $2. A customer has proposed a special order to purchase 10,000 bats at a special price of $20 per unit. If Hoffman accepts the order, the company would not have to pay its sales people their normal commission of $2 per unit, but the company would incur a shipping cost of $3 per unit. If Hoffman accepts the special order, how will operating income be affected? Decrease by $80,000 Decrease by $120,000 Increase by $30,000 Increase by $50,000