Talk Made EZ Company makes special equipment used in cell phones. Each unit sells for $400. Talk Made EZ uses just-in-time inventory procedures; it produces and sells 12,500 units per year. It has provided the following income statement data:

Traditional Costing		Contribution Margin
Revenue	$5,000,000	Revenue	$5,000,000
Cost of goods sold	3,000,000	Variable Expenses
Gross profit	2,000,000	Manufacturing	1,000,000
Selling & admin expenses	650,000	Selling & admin	400,000
		Contribution Margin	3,600,000
		Fixed Expenses
		Manufacturing	2,000,000
		Selling & admin	250,000
Operating income	$1,350,000	Operating income	$1,350,000

A foreign company has offered to buy 100 units for a reduced price of $250 per unit. The marketing manager says the sale will not negatively impact the company's regular sales. The sales manager says that this sale will not require any incremental selling & administrative costs, as it is a one-time deal. The production manager reports that there is plenty of excess capacity to accommodate the deal without requiring any additional fixed costs. If Talk Made EZ accepts the deal, how will this impact operating income?

A) up $17,000

B) down $8,000

C) up $25,000

D) down $800