Tendulkar Inc., has a plant capacity of 40,000 units per month. Unit costs at capacity are:

Direct materials $2.00

Direct labour $1.50

Variable overhead $1.75

Fixed overhead $0.75

Marketing-fixed $0.80

Current monthly sales are 37000 units at $9.30 each. Tuffers Inc. has contacted Tendulkar Inc. about purchasing 3000 units at $6.30 each. Current sales would not be affected by the special order. If the order is accepted, what is Tendulkar's change in profit?

Select one:

a.

An increase of $900

b.

An increase of $750

c.

A decrease of $1,500

d.

An increase of $3,150

e.

A decrease of $9,000