Suppose a company has an annual plant capacity to produce $2,500$ units. It has predicted the following information for the current year: Sales of $2,000$ units at $$40$ each; Variable manufacturing Cost of $$24$ per unit and fixed Manufacturing Cost of $$17,000$; and Variable Selling and Cost of $$2\mathrm{.}50$ and Fixed cost of $$2,500.$ Should the company accept special order of $400$ units at $$32$ each provided only half of the variable selling cost can be incurred?

Select one:

a$.$ Accept, there will be an incremental profit of $$2,700$

b$.$ Accept, there will be an incremental profit of $$3,700$

c$.$ Reject, the company will loss $$1,200$

d$.$ Reject, the company will loss $$3,200$