Tendulkar Inc., has a plant capacity of 35,000 units per month. Unit costs at capacity are:

Direct materials $1.75

Direct labour $1.50

Variable overhead $1.25

Fixed overhead $1.50

Marketing-fixed $1.80

Current monthly sales are 33000 units at $7.50 each. Tuffers Inc. has contacted Tendulkar Inc. about purchasing 2000 units at $5.50 each. Current sales would not be affected by the special order. If the order is accepted, what is Tendulkars change in profit?

Select one:

a.

A decrease of $1,600

b.

A decrease of $1,000

c.

A decrease of $4,000

d.

An increase of $2,000

e.

A decrease of $4,600