6. Reggie Corporation manufactures a single product with the following unit costs for 1,000 units:

Direct materials	$2,400
Direct labor	960
Factory overhead (50% 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. The units would be the same, but Reggie would not incur the variable selling expenses. Currently, the models are sold to dealers for $7,800. Reggie Corporations capacity is sufficient to produce the extra 100 units. No additional fixed expenses would be incurred on the special order.

What would be the effect on profits if Reggie accepted the order?

a. $270,000 decrease

b. $180,000 decrease

c. $135,000 decrease

d. $75,600 increase

e. $111,600 increase

f. $120,000 increase

g. none of the above