Tarazz Company manufactures computers. The following cost information for the manufacture of one computer has been compiled. Direct materials Direct labor Variable manufacturing overhead *Fixed manufacturing overhead Total cost per unit $48 64 48 32 $192 *The $32 amount reflects the amount of indirect cost allocated to each unit. However, as indicated, the total of these indirect costs is fixed. Tarazz has received a special order for 500 computers at a price of $175 per unit. By how much will overall company net income change if the order is accepted? O Oompany net income will DECREASE by $7,500 if the order is accepted. O Company net income will DECREASE by $8,500 if the order is accepted. O Company net income will INCREASE by $8,500 if the order is accepted. O Company net income will INCREASE by $7,500 if the order is accepted.

"The $32 amount reflects the amount of indirect cost allocated to each unit. However, as indicated, the total of these indirect costs is fixed. Tarazz has recelved a special order for 500 computers at a price of $175 per unit. By how much will overall company net income change if the order is accepted? Q Dompany net income will DECREASE by 57,500 if the order is accepted. Company net income will DECREASE by $8,500 if the order is accepted. Company net income will INCREASE by $8,500 if the order is accepted. Company net income will INCREASE by $7,500 if the order is accepted