Reggie Corporation manufactures a single product with the following unit costs:

Direct materials $$2,400$

Direct labor $960$

Overhead $(30\%$ variable$)1,800$

Selling expenses $(50\%$ variable$)900$

Administrative expenses $(10\%$ variable$)840$

Total per unit $$6,900$

Recently, a company approached Reggie Corporation about buying $100$ units for $$5,100$ each. Currently, the models are sold to dealers for $$7,800.$ Reggie Corporation's capacity is sufficient to produce the extra $100$ units. No additional selling expenses would be incurred on the special order.

How much will income change if the special order is accepted?

Question $9$Select one:

a$.$

increase by $$111,600$

b$.$

increase by $$398,400$

c$.$

no change

d$.$

decrease by $$180,000$