The ABC Company has just obtained a request for a special order of 6,000 jigs to be shipped at the end of the month at a selling price of $7 each. The company has a production capacity of 90,000 jigs per month with total fixed production costs of $144,000. At present, the company is selling 85,000 jigs per month through regular channels at a selling price of $11 each. For these regular sales, the cost for one jig is:

Variable Production Cost	$4.6
Fixed Production Cost	$1.8
Variable Selling Expense	$1.0

If the special order is accepted, ABC will not incur any selling expense; however, it will incur shipping costs of $0.30 per unit.

If ABC accepts the special order, what will be the change in monthly operating income?

a.

$3,600 decrease.

b.

$12,600 increase.

c.

$7,200 increase.

d.

$5,400 decrease.