Square Corporation provided the following information regarding its only product--tables:

Selling price per unit $65

Direct materials used 150,000

Direct labor 225,000

Variable factory overhead 140,000

Variable selling and administrative expenses 60,000

Fixed factory overhead 370,000

Fixed selling and administrative expenses 30,000

Units produced and sold 20,000

Assuming there is excess capacity, the effect of accepting a special order for 1,000 units at a price of $40.00 per table is that net income would _____.

	A.	decrease by $28,750
	B.	decrease by $10,000
	C.	increase by $40,000
	D.	increase by $11,250